Supplementary code of fair competition for the beater and Jordan and allied equipment industry (a division of the machin...


Material Information

Supplementary code of fair competition for the beater and Jordan and allied equipment industry (a division of the machinery and allied products industry) as approved on May 14, 1934
Portion of title:
Beater and Jordan and allied equipment industry
Physical Description:
14 p. : ; 24 cm.
United States -- National Recovery Administration
Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Papermaking machinery -- Parts -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1399-54."
General Note:
"Approved Code No. 347--Supplement No. 7."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004941206
oclc - 654807332
System ID:

Full Text


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

Approved Code No. 347--Supplernent No. 7

Registry No. 1399--54






(A Division of the Mlachinery and Allied Products Industry)




This publication is for sale by the Superintendent of Documents, Government
Printing Office, WI~ashington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.

Atlanta, Ga.: 5034 Post Office Building.
Birminghatm, Ala.: 257 Federal Building.
Boston, Mass. : 1801 Customhouse.
Buffalo, N.Y.: Chamber of Comnmerce Building.
Charleston, S.C.: Chambellrr of Commerce Building.
Ohicago, Ill.: Suite 1706i, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber o~f Commerce Building.
Detroit, M~ich.: 801 First National Bank Building.
Houston, Tex.: C'hambher of Commerce B~uilding.
Indialnapolis, Indl.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Fedelral Building.
MNemphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 F'ederal Building.
New Orleans, La.: Rtoomo 25-A, Customhouse.
New York~, N.Y.: 734 Customnhouse.
Norfolk, Va.: 406 East Plume Street.
Philmlel~lshia. Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Lou~is, Mo.: 506 Olive Street.
San Frlanc~iscco, Catlif.: 310 Custombhouse.
Seattle, Wash.: 8019 Federal O~ffice Building.

Approved Code N\o. 347--Supplement ~No. 7



As Approved on May 14, 1934



An appnlicat~ion hav-ing been duly made pursuant to and in. full
compliance with the provisions of Title I of the National I~ndus-
trial Recovery Aict, approved June 16, 1933, for app~rov-al of a Sup-
plemnental Code of Fiair Compl~etition for the Beater & Jordan. &
Allied IEquipment Subdivision of M~achineryT and Allied Products
]Industryr, anld hearings havPing been dulyT held thereon. anid the an-
nlexed report on said Supplemental Code containing findings with
r~espe't thetreto, having been made and directed to thle Ptriesident:
NOWV, THEREFORE, on behalf of the! President of th~e United
States, I, Hugh S. Johnson, Administrator for Industrial Recov~ery,
pursuant to authority vested in me by ExYecutive Orders of the
President, including Ex~cutive~ Order No. 6543-A, datedl Decembe~r
30, 1933, and otherw~ise; do hereby incorporate by reference said
ann~exedl report and do find that said Supplemlental Code complies
in all respects with. the pertinent provisions and will promote the?
p~olicy and purposes of said Title of said Acct; and do hereby order
that said Supplemlental Code of Fair Co-mpetitionl be and it is her~eby
approvedc subject to the following condition:
1. That the Beater & Jordan & Allied Equipment Mianufacturers
Association shall amenld its Articles of Association to the satisfac-
tion of thne .Admninist~a~tor within the time set forth in the Order
of the Administra~tor, da~ted April 26, 1934, which order extendedt
the original period of thrirty- (30) days set forth in the Executive
Order of March 17, 1934, approving the Basic Code of Fair Compe-
tition for the Manchinery and Alliedl Products Industry.
2. That the provisions of Article VIIII, Secction (a), insofar as they
prescribe a wait ingl period between the filing with the Code A8uthority
(or such agency as may be d'esignated in the Supplemlental Code)
59024"--544-83----34 (11~

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 hereby
are stayed pending my further order.
3. That the provisions of Article VIII, Section (e) be a~nd they
hereby are stayed pending the submission of satisfactory evidence
concerning distribution of the products of the Subdivision to the
Administrator for Indu~zstrial Recovery.
Approval recommended :
A. 1R. GuarC,
Division Admi~nistrator.
WVBSmwooT, D.C.,
May 14, 1934.


~The WhI~ite Howe.
SmR: This report re~lates to the Supplemel~ntal Cod~e of Fair Com-
petitionl for the Bteater &i Jor~dan & Allied Equipmlent Subd~ivision
of Mac~hineryIV and Ailliedc Produrc~ts IndusltryS as proposedt~i byT the
centeri & Jordanll & Arllied Equiiipment Mnu~ iifac~tur~ers Aicso.ciation.
A pub'llic hearing was heldl in Washingtonl, D. C. on De~cemlber 6,
1933 and reconvenedl on December 21, 1933. Th']e public hearings
were co~ndurctedl in ncordal~nce with the provisions of Title I of the
~National Industrial Recovery Act and all persons wppere given full
opportunity to be heard.
T~he Beanter & J~ordan & Allied Equipmel~nt Subdiv~ision, btinlg
trully representattive of thle manufacturers of thne products definedl
in Article II of the Supplemenmtal Code, has~ elected to formulate and
submit a, Supplemental Code of ]Fair Comnpetition as provided in the
second parag.~n-rap of Article I of the Code of ]Fair Com~petition for
the Machineryr and Allied Products Industry, appro~cved~ byr you on
the seventeenth d3ay of Ma r~ch, 1934.
The rSulbd-ivision as decfinedl in the Supplemecllntl Code includes the
manu~~fn cture~ and sale of beaters and jordans and allied equipmenclt.
Annual -nle~s in 1932, according to thne Ass~ociation, were approxi-
mnately one-third the 1929 lev~el. They dcclinetd from $5,185,000 in
19r29 to $1,617,000 in 1932. The Subdivision has estimated sales for
1933 to be $1,455,000, wFthich indcica~tes a dtc~linle of 10 per cent from
the 1932 level.
Estima~tes of aptproxima~te employment for the entire Subdcivision
submittedt by thle Trade Association, indicate that employment
declined from. 900 in 10009 to 454 in leSS2, or 49.6 per c~ent. Empl1~oy-
mnent in 1!,33 inlcretasedc- to 583, or 28.4 per cent.
No figurest are avanilable on the full-timne hlours per weerk for thet
entire Subdl~~i visio1. A summarized tabulation of qjue~t ionnnlliles
retulrned~ by the inrlustryS shows that in June, 1990~, thet average work-
ing t~ime was 8 ton 11 hours pe~r day; in June, 1933, 8 to 10 hour~ls per
day; and in Oc~toberl, 1933, 7 to 9 hours per day. In Oc~tober~, 1933,
the Subdivi ion was wPorking t-wo shifts.
Averagwe hours per week were reportedly to be 51.6i in June, 1999;
43.5 in June, 19333; and 39.7i in Oc~tober, 19)33. In October, 1933, the
average hours~'~ were 93.1 per cernt. less than the June, 1920), av~elurage.
The effet~ of the 40-hour prlov.ision with production at mocre nor-
mal levels may be esjtimaltedl on a bas~is of the 1930--19r31 average of

total man-hours per week divided by the number of hours prescribed
by the Code. After 1929, man-hours declined steadlily from 46i,440 to
a minimum of 13,6i70 in 1932, or 70.6 per cent. Since then, man-
hours have increased to 23,620, or 72.8 per cent.
If it is assumed that the 26,475 average man-hours for 1930-`1931
are representative of the volume of production for those years, and
a reasonable measure of man-hour requirements in. a more! normal
period, the adoption of the 40-hour week would require a force of
app""sroximtely 660 employees, or 73 per cent of the 1929 working
Howrever, owing to the impossibility of all employees of the Subdi-
vision working the maximum 40 hours, the average work: week will
be shorter, say 36 a~ssume d effective hours, and the emnployment cor-
respondingly greater, viz: 735i workers will be required 'to produce
the 193(N-1931 Tvolume.
The minimum. wage pro-visions proposed for the subdivisions
which are operaltingr under the C~ode of the Manchinery and Allied
Products Inmdustry3 are based on a flat minimum hourly~ rate of 32
cents per hour for the South and thne following city population
differentials for all other sections of the U~nited States:
Over 5i0,000 population_ __ ...--~----_- 40 cents perhour
Over 10,000 to 50,000 population ______- -- 38 cents per hour
10,000 population and under ...__,_____ 36cents perhour
In addition t~o the minimum wage rates shown above, the Code
provides that women engaged in substantially the same work as
men shall receive the same rate of pay as such men employees; that
the minimum wage for women employees employed in plant opera-
tions shall not be less than 87.5 per cent of the proper ratec for the
locality in which employed as specified; and that the minimum in
the South shall be not less than 32 cents per hour.

Estirlnur4l number of factory workers receiving less than dtsignaterfd hourly

Distribution of factory workers
receiving less than the mini-
mum regardless of location
Proposed minimum hourly rates
Approximate Approximate
percent number

40 cents (other U .S.). ......... ......... ......... ......... ......... 44. 4 150
36 cents (other U .S.) ........ ---.-......................... ... 34. 7 17
32 cents (Sou th).... .... .... ... .. .... .... ... .... .... .... ... 20.9 70

Based on the distribution as of June 15, 1933 and on the specified
percentages of the number of factory wTorklers~ receiving less than
the~ desiilnat~ed rates shown in. thne above table, the adoption of t.he
proposed~r rminimnum rates will probably cause an mecrease in factory
payoll. he e~stimaltedl increase as of J~une ;15, 1933, regardless of
location of the w~olirkers will probably, under the most favorable
conditions, not exceed 9.0 per cent assumngln only upward adtjustment
in the brackets belowj the 40 cent minimum. and no change in man-
hour requllli remlent s.


Article I states the pulrpo'ses of the Supplemellntal Cotle.
APrticle II sets forth certain definitions.
~Article III[ provides for the adoption of the employment pro-
visions of the'Na~tional Indusitr~ial ]Recov~eryT Code of the Manchineryy
and Ailliedl Proluc~ts Indus~try, as app~rovedi by you1 on the seventeenth
day of IMaRCh, 1933, and as from time to timle ninended7~i.
Article IV provides for the adloption of Article II, VI, VIII, and
IX of the National Indutriatl; l RcoveryS Coder of the Mauchlinery~ and
Allied Products Industry, in a~ccolrdance with the condlcitiolns in this
Alrt~icle governing their a Jo~ption.
Article V provides for the establishment~ of a Code? Anlthority and
defines its power~ls and duties.
Article VI provides for the estab~li hmel~nt of a uniform acloulntingr
system alndJ met~hod of cos~t findingr and1r/or esi~ltmaing to be used by
all emlploye'trs in the Subdivision.
Article VII provides that no products of the Subdi~vision shall be
sold or exchanged below a reasnacnble, cost wphen the Code Authority
determines that an, lemergency exists.
Article VIII provides for the filing of prices with the Code Au-
thority and for t~he dissemination of price information by the Code
Articlelt IX~ defins ceta3CLLZin L1ttrad priCtic~es as being unfair methodl s
of competitio-n and provides that these pralctic~es be eliminatedl.
Article X provides for the exclusion of d~irecct export sales from
the provisions of the Supplemental Coede (concernl'ling prlic'ing and
marketing of th products of the Subdivision.
Article XiI contains the method by which the Code mayr be maodified~
or amendl~ed.
Article XiII contains the provisions in refe~renlcet to monorlrpolies andl
di.scr~imilnation1 against small enllterprises required by the Alct.
Article XIII .states the effective late of the SuppIlementaf~l Code.

Thle Aissistant DIe uty _Administrator in his final repor~'t to mie on!
said~ Supplemental Code having found as herein set forth and on thre
basis of all the prIceedc~~ings~ in this matter:
I find thnat:
(a) Said Supplemnental Code is well designed to pr~omolcte the poli-
cies and pur~poses of Title I of the Natiolnal Industrial Recovery Aict,
:inc~lud~ing~ remlloval of obstrulc-tionls to the frete flow of iletntersat andl
foreign connelltrcec which tend to dlimlini hl the amount thereotlf and
will provide forl the generral welfare by promo~tting the o1~~rgaiz tintcl
of indusltry\ for the p~urpose, of coopera~tive action unwng~l the trade~l
groups by inllucingS and maninta~ining~ united action of Inblur and man-
ageme~nt undert'l adleqlate govetrnmen~rtall sanctions a ndt uprii sl\iionl,
by elim~inating unfair complletitive practices, by piromoting thle fullest
possible utilizatio~n of the ~r~esent productive cap~acrity of indu ~tries,
byv avoiding* undue restriction of production (except as many be temn-
p~orarily requiredd, by increasing the consumption of indlu trial andc
agricultural products through increasing purchasing power, by re-

during and relieving unemployment, by im~proving standards of
labor, and by otherwise rehabilitating industry~.
(b) Said Subdivision normally employs not more than 50,000
employees; and is not classified by me as a major indlustry.
(c) The Supplemental Code as approved complies in all respects
with th-e pertinent provisions of said Title of said Act, including
without limitation Subsection (a) of Section 3, Sub~section (a) of
Section 7, and Subsection (b) of Section 10 thereof ; and that the
apphicant association is an industrial association trulyr representative
of the aforsesaid Subdivision; and that said association. imposes nro
inequitable restrictions on admission to membership therein.
(d) The Supplemenll~tal Code is not designed to and will not permit
monopolies or monopolistic practices.
(e) The Supplemnental Code is not designed to and will not elim-
inate or oppress small enlterprises~ and will not operate to discriminate
against them.
(f) Those engaged in other steps of thne economic process have
not been dlep,~rive of the right to be heard prior to approval of said
Supplemenmtal Code.
F'or these reasons, therefore, I have approved this Suppletmental
Code, provided that certain provisions relating to price publication
are stayed; that the Articles of Associationr of Applicant be revised
as stated in the Order; and that Section (e) of Article VTIII be
stayed pending submission of satisfactory evidence concerning dis-
tribution of the products of the Subdivision to the Adlministrat~or.
A dm iinistr~ato~r.
MaY 14, 1934.




T'o effectuate the policy of Title I of the National Indtustrial
Recover Act, thec following provisions are estab~lishedl asaup
plemnental Code for the Beat~er & Jordan & Allied Eq~tuipmen
Mantuf actu ri ng Subdivision of the Miachiner~y and Alliedc Pr~oducts
Industry, and together withn the N~ational Industrial R~c.overy Codle
of Machinery and Allied Products Industry$ to which it is a Sup~ple-
ment shall be th3e standard of fair comlpetittion for this subdivision,
aind shall be binding on each emp~loyer therrein.

"Applica~t means thie Beater & Jordan & Allied~ ~Equipmnent
MTanufacturers .Association of the Puzlp and Paper Indulrstry, a trade
organization, all members of wvphich are! engag~edl in the manulfacture
for sale of the products of the Beater &~ Jorda~n & ALllied Eqluipment
Manufactuirinig Subdivision of the Manchinery and Allied P'rodlucts
Industry, which organization is truly representative of this Subdivi-
'" Industry "' means the MN1achinery and Allied Products Industry,
as defined in its National Industrial RecoveryS Code as app~lrov'ed by
the President, Mlarch 17, 1934 and as such definition may fromu time
to time be amlendled.
"' Subdlivision "" means this Beater & Jordan & Alliedl Equripmecnt
Manufacturing subdivision of the Machinecry and Allied Proluc~ts
Industry as defined and set forth in Parnge~nph 3 of Article II of
the NJationatl Industrial Recovery Code of the Mnc~hinerly and Allied
Products Indlustry as follows:
Beater & Jordan &C Allied Eq~uipmecnt Sulbdivision "" means the
manufacture for satle of Beaters &~ Jordans &ct A~llied' 'Equlipmecnt annd
parts thereof, and includes all those engagedl inr such ma~nufActure~
for sale.
"L Code '" means the NaiTtional Industr~ial Recovery Code of th~e Ma~-
chinery and Allied Products Indlustry, as aIpproved by the President.,
and as from time to time amendetd.
"LPerson "' mea ns a naturiral person, a pa rt nersh ip, a corpofat ion, an
association. a trust, a trustee, a trulstee in bankrulptcy, a recetiver, or
other entity.
"C Employer '" means any person engaged in this Sulbdivsion 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 anly such employer.
The Aict means Title I of the National Industrial Recovery
The President means t~he President of the Unlited States.
T'he Adlministrator means the Administrator for Industrial
Basic Code Authority means the Code Authority for the Ma-
chinery and AL~llied Products Industry as constituted by the Code.
Code Authority: means the Code Authority conlstituted for this
subdivision as provided by the Code and by this Supplemrental Code.
Grou-p Code Authority means the Code Authority for anyV
group or classification of products within this subdivision, consti-
tuted under the authority of Airticle VJ of this Supplemental Code.
"~ Publish ") means to make available to the public.


The following Articles of the Code, viz: ALrticle III, "L Working
Hours "; Article IV, W7ages "; and Article V, General ILabor
Provisions ", are made a part of this Supplemental Code, with the
samne effect as if they were written into this Supplemental Code.


The following Articles of the Code, viz: Article II, "'Definitions ";
ALrticle VI, "Administration ", to the extenlt that they shall be ap-
plicable to this Supplemellclntl Code as such or as it mlay hereafter be
administered as an au~tonomrous Code; Article VIII, Modifications
and Termination "; and Article IXZ, Withndrawal "; are made a
part of this Su~pplementatl Code withn the same effect as if they were
written into this Supplementatl Code, except as h-erein, modified.


(a) T'o administer, supervise and facilitate the performance of the
provisions of this Supp~tlemntltlC I Code, ther1e is hereby e~stab~lishedl a
Code A~uthority which shall coc.nsi Lt of not less than seven (7) nor
more than nine (9) members, seven (7) of whom are to be appointed
by~ the Executive Canonlrittiee of the Applien~nt.
1. One (1) additional member to be selected in any fair manner,
with the approval of the Administrator, by employers in this subdli-
vision not member:, ~s of the Applicant, wFho are cooperating under th~is
Code as described in Section (d) hiereocf, if so desired byr such non-
2. The Administrator may, at his d~isllcrtion, appoint one (1)
additional member without vote and wFithout expetnse, to the Sub
(b) The Code Authority shall adopt rules and regulations for its
procedure and employ such perl-c nnec l as it mnay deem nlces~-n~ry
(c) Any employer in this Subllivision shall be eligible for mlenl-
bership inl the Applicant.
1 See paragraph 2 (1) of order approving this Code.

Any employer in this Subdivision shall be entitled to vote subject
to provisions of Section (a) hereof at election of, and share in, the,
benefits of the activities of the Code Author~ity, and may participate
in an~y endeavors of the Applica~nt and Codle Aut~hority in the prepa-
ration of any revisions of, or ailditionsi or supplements to this Sup-
plemental Code, subject to provisions of this Sect~ion (a) and Sec-
tion (d) of Article V.T
()Ench employers in this Subdivision, tsubje~ct to the jurrisd~iction
of this Supplement~al Code and accepytingr the benefits otf the acetivi-
ties of the Cod~e Aut~horit.yhrudr hlpytoheC eAu
thority his proportionate s3[hare of t, he i amounts ees toe payl the
cost of assembling, analyzing, and pulblientio~n of such reports and
data, and of the mlaintenance of the Code A~uthorityy in connection
with its alctivities relative to the preparation and administration of
this Supplemnental Code, said proportionate share, to be based upon
the v~olumne of shipments for the nex~t. precedting canle~nanr year alnd/or
such other factors as the! Code Authority may prefscrirbe and the
Administrator ma~y approve.
(e) With a view to kereping the Presidtent informed, as to the
observance~ or non-observance of this Supp~lemlental Colle, and as to
whether this subdivision is taking approprinte steps to effEectuate the
dleclare~d policy of the ~Act, each employer ;thall pIrep'are andlc file with
sucrh p~rsonn or organization as Code Acuthority m~ay designate, and
at such timne and in suceh mnnarer as mayr be by Code Auxthority pre-
scribedl (to be held and used subhject to the limitations of this Article
-V) s tati1stics of plant capacity, volume of production, volume of
sales in units and dollars, orders received, unfilled orders, stocks on
hand, inventories, raw and finished ", numbe-rr of emnployees, wagHe
r~at~es, employee earnings and hours of wrork anld such other data or
information as the Code Authority, subject to re~view~ by the Admrlin-
ist Irator, may~S from time to time requli re.
Cod Auhortyshall file with, the Basic Code ALuthority such of
th~e data and statstical information referred to in pr~ecedling pnrn-
graphl as mayT be required.
In addition to infor~mation r~equiredl to be submitted to Basic Code
Aulthority, there shall be furnished- to Governmecnt agetnc~ies such
statistical infolrmation as the Administrator may deem necessary for
thne purposes recitedl inl Section 3 (a) of the Act.
(f) Ex~ep-t, as otherwise provided in the At,~t all statistics, dat~a
anid inforlmatio~n filed in acco~rr anc~e with the provisions of this Sup-
pleme~ntal Code shlall be co~nfidlential; prIovided, how-ever, that noth-
ing herein shall preve\nt the publlicaitioln of general summallrie~s of
such srtatistics, data and information.
The statistics, data and inforlmatio~n of one employer shall not
be revealedl to any other employers, except that, for thle purpose
of administering or f~acilitating the enforcement of the provisions
of this S;rupp~lemetntal1 Codle, Cod~e Authority, by its duly aluthlorized
repIresentatives (who shall nolt be ain employer~ nor in the emprloy
of any emp~loyer affected by this Su~pple~metntl Code), shall have
access to any andc all statistics, data and inlformlation, that may be
furnishedl hi accordannce with the provisions of this Su~pplemnentatl

(g) Aggregations of employers havin~ngd achommninte res admnd
common problems may be grouped byCoeAtriyfrdmns
trative purproses. There shall be a Group Code Authority ap-
proved or appointed by Code Authority for each such group.
If formal complaint is made to Code Authority that provisions
of this Supplemental Code have been violated by any employer,
the Code Authority, or proper Group C'ode Authority, mayT cause
such investigation or audit to be made, to the extent permitted by
the Act, as may be deemed necessary. If such investigation Is made
by Group Code Authority it shall report the results of such investi-
gation or audit to Code Authority for action.
Code Authority shall have the right, to the extent permitted by
the Act, upeetoan0,:alyze any transaction coming under the scope of this
Suplmetl odon which any unfair cmeionialeed,
to show.evidence of any violation of this Supp:lemnent~al Code, to
report any such alleged violation to the proper authorities for
(h) It is, however, expressly provided that the jurisdiction of
Code Aituthority under this Supplemental Code over anly employer
shall be limited to that portion of the business and employment
of such employer which is within this Subdivision.
(i) In order that the Code Authority shall at all times be! truly
representative of the Subdivision and in other respects comply with
the provisions of the Act, the Administrator may provide such hnear-
ings as he may deem proper; and thereafter if he shall find that the
Code Authority is not trulyr representative or does nlot in other
respects comply with the provisions of the Act, may require an
appropriate mnodlification in the method of selection of the Code
Authority, or any Group-Code Authority.

The S~upplemental Code Atuthority shall cause to be formulated
an accounting system and methods of cost finding and/or estimanting
capable of use by all employers of the Subd~ivi\ion. After such sys-
teml and methods have been formulated, full detatiils concerning th-em
shall be made av-ailablejr to all employers. TIhereafter all emnployers
shall de-termlinel and/or estimate costs in accordance with the pr~in-
ciples of such methods.

When the Code A~uthority determines that an emergency exists
in this industry and that the con use th~1ereof is dle-t ru~ct i ve price-cuttingr
such as to render ineffective or seriously endanger the mnaint~nancre obf
the provisions of this Co-de, the Code ~Authority may cau~e, to be
determined the low\Test reasonablllle cost of the products of this indurs-
try, such cleterImination to be subject to such notice andl hea~ringr as the
Administrator may require. The ~dminlist~r~atorI may approvre, dis-
approve, or modify the determination. Thereafter, during the period
of the emergency, it shall be an unfair trade pr~c~tice for anyt mlem-
ber of the industry to sell or offer to sell any products of the in<1ust ry
for which the lowest, reasonable cost has been determined at such

prices or upon such terms or conditions of sale that the buyer will
pay less therefore than the lowest reasonable cost of sucht products.
When it appears that conditions have changed, the Codle Authority,
upon its own initiative or upon the request of any interested party,
shall cause the determination to be reviewed.


(a) I~f and when thie Codec Authority dletermines that in any group
of the Subdivrision it has been the generally recocgnizedl practice to
sell a specified product on the basis of net price lists or price lists
with discount. sheets and fixed terms of sale and payment, each
manufacturer of such product shall within ten (10) days after
notice of such determination, file withi Code Authority a net p~rieg
list, or a price. list with dtiscojunt sheef', as the case mnay be, individu-
ally prepairecd byT him showing his currentprcsopiesadi-
c~ounts including f.o~b. points and t~ermls o' sales an paym~ent and i
the Code Authority shall immredliat~ely publish the siame and send
copies thereof to all known manufacturers of' such specified p~rodlucts
who are! cooperating in the administration of this Supp~lemnental
Revised price lists and/or discount sheets and/or terms of sale an~d
payment matyr be filed from time to time thereafter writh. the Code
Authority by any manufacturer of such product, to become effectiv-e
ten (10) days from date of filing with Code Aurthority, unless Codle
Authority shall authorize. a shorter pIeriodl, and copies thereof with
notice of the effective date specified, shall be immediately pulblishecd
and made available to interested parties and sent to all known mlanu-
facturers of such product w1ho are cooperating in thle administration
of this Supplemental Code, any of whom may file, if hne so desires,
revisions of hiis price lists and/or dlisc~ount. sheets and/or terms of
sale and payment, wChich shall become efffective upon the date. when
the revised price list and/or discount and/or terms of sale and pay-
mlent sheet first filed shall go into effect.2
(b) If and when Code Author~ity shall determine that in any
group of thle subdivision not now selling its product on the basis
of price lists and/or discount sheets, with fixed terms of sale and
payment, th distribution or marketing conditions in the group! are
the same as, or simlar to, the distribution or marketing conditions in
a group where thze us of price lists and/or discount sheets and fixed
terms of sale and payment is well r~ecognized, and that, a system of
selling on net price lists or price lists and discount sheets withl fired
terms of salet annd payment should be put into effect in suchn group,
then eachl manufacturer of the product or products of such. group
shall within twenty (20) days afte notice of such determination file
with Code Autority net price lists or price listsj and discount s~hees,
including f.o.b. points and fixed terms of sale and paymrent, showing
his prices and discounts and terms of sale and payment, and such
price lists and,'or discount sheets and/or term of sale and paymaent
shall be immediately published and sent to all known employers: and
may be thereafter revised in the manner hereinbefore provided. P~ro-
vided that Code Authority shall make no determninatlon to place any
a See paragraph 2 (2) of order approvin this Code.

product of the Subdivision (not now on a price-list basis) on a price
list basis, as provided in this paragraph (b) or Article VIII, unless
two thirds of the employers (cooperating in this Code as provided in
Article V (d)) whoA a1re 1t t~hatf ti;me engaged in manlufcturing such
products shall affirmatively consent that such de~termlination be made.
(c) To the extent permitted by the Act, Code Authority shall have
power, on its owYn initiative, or on the complaint of any employer, to
investigate anly price and/or terms of sale and payment for any prod-
uct shown in any price list and/or discount and/or terms of sale and
payment sheet so filed with Code Authority by- any em~nployer.
(d) No emlployer shall sell directly or indirectly by any means
wha~tsoever1 any product of the subdivision, covered by provisions
of this Article VIII at a price or at discounts or on terms of
sale and payment different fromt those provided in his own current
net price lists, or price lists and discount anld/or terms of sale and
paymlent s~heet.
(e) No employer shall sell to or through any distributor wmho shall
fail to agree to resell in accordance with Articles VII, VIII and IX
of this Supplemental Code.3

Unfair trade practices shall be deemed to be practices or acts
which by subterfuge, concealment, misrepresentation, or by dis-
crimination, result or tend to result in selling at other than pub-
lished prices, or in deceiving or misleading purchasers, or in nuis-
representing the products of competitors.
A4ny deviation from, the standarrds as set forth in this Aclrticle IXI~,
or anyv amendments thereto, by anly member of the Industry, either
directly or indirectly through his agerrnts, shall be co~nsidlered as
unfair method of competition. and a violation. of this Code.
TIChe following specific practices are examples of unfair methods
of competition as defined above:
RLE, 1. TNO metlul.)er of this subdivision. shall secretly offer or makre
to any customer, agent, fiduciary or representative of customer an
paymenl-t, or allowance of a rebate, refund, commission, cr~ed~it, un-
ea~rned discount or excess allowance, whether in the form of money
or otherwise, nor shall a m~emnber of the Industry secretly offer or
extend to any customer any special service or privilege not extendedl
to all customers of the same class, for the purpose of influencing
a sale.
RUSLE 2. NO memzber of this subdivision shall crive, permit to be
given, or directly offer to give anything of value ~or the p~urp~se: of
influencing or rewarding the action of any employee, agent, or repr~e-
sentative of another in relation to the business of the employer of
such employee, thle principals of such agent, or the represenclted party,
without the knowledge of such employer, principal, or par~ty. Coma-
mlercial bribery provisions shall not be construed to prohibit free anld
general distribution of articles comnmonly used for advnlertil 1ising, exep
so far as sruch~ articles are nectulla~y ue o omrilbiey
abovec defined.
s See paragraph 2 (3) of order approving this Code.

RULE 3. Untruthful advrising,a representing, or marking an
product, with intent to deceive or mnisleadl.
RULE4. Wongflly nticng ay the emlployvees of comnpetitors
with the purpose and effectofudlhmprniurg rem
barrassing competitors in their business. Nothing in th~is paragraph
shall be so interpreted as to in any manner restrict th right of any
employee to seekc employment with any employer at any timle.
RULE 5. Making or ca using or petrmiltting to be made or published
any false, untrue, or deceptive' statement by wayp of advertisement or
otherwise concerning the grade, qulalityr, quantityJ, capacity, substance,
charct~etr, nature, origin, size, or prep~aration of any product. of this
subdivision, having the tendencyr and capac~ity to mslelad or deceive
purchasers or prospective ~purchase~rs.
RULE 6. The defamation of competitors by falsely imputing to
them disho~noraible conduct, inability to perform contracts, question-
abl cedi sandng orbyother false r~epres~~entatic io, or the false
dispacraemet ofthedng gr ,ad or quality of their goods, with the tendl-
ency and capacity to mislead or dlerceive purchasers or pirospec~tive
RULE 7, ~Allowing on used eqluipmetnt in connection wlith a sale
of new equipmnent'more than the scrap va-luet of such usiedl equipment
or more than the price at w~hichl the employer expects to r~esell such
used equipment, whichever is the greater, which allowance shall be
reported to the C1ode Authority :inunediaitely.
RULE 8. Inlducing or attempting to induce the breachn of existing
contracts between comnpetitor~s and their culstomers1 or wrIonafullly
interfering with or obstructing the performllance of any such con-
tractual duties or services.
RULE 9. T'he sale or o~flfer for sale of a new product, as a repos-
sessedl or rebuilt p~rodluct and at a reduction be~low regular pr~evail-
ing pub~lisihedl new-prodluct prices.
RUL;E 10. Selling or quoting~ for dlelivery at any points other t~han
specified in published price schedules without the additionl of proper
transpolrtation and handtlingr charges.
RULE ~11 Withho~1~ildingfr~om or inserting in an invocice, any statte--
mlent, which makes the invoic~e a false r~e~ordt, wholly or in part, of
the transaction r~epresentedl on the face thereof.
~RULE 12. The miakingi of gurlanlte es against defect in material
or workmanship for a longer per~iod than one y~ear from invoice dalte.
RULE 13. The sale or otreringa for sale of any prodluc~t of the In-
dustry under any form of guarantee to the purchaser or prospective
purchaser against, either advance or protection, against th~e decline
in thle price of said product.. This includes contracts for mlaterialls
which ar~e to be delivered over a period longer than that required
to mlanu fact ur~e.

Trhe provisions of this Supplemnentn1 Code concerning pricing and
marketing (Articles VI[I, VIII andr IX) shall not apply to direct
export sales of any product. A. simiilar exemlption mnay be granted'
by the Code Authorityr of this Sutbdivision as to Sales of any product
destined ultimately for export. Unless otherwise determlined by thie
Code Authority the term "L expor~t shall include all shipments to all


14 3 1262 08852 5802

places without the several states of the United States and the District
of Columbia; provided~c, however, that no shipment to any territory
or possession of the U~nited States shall be consjidered an export when
any employer is engaged in the industry in such terr~itor~y or

(a) As provided byr Section 10 (b) of the Act, the President ma y
from. time to time cancel or modify any order, ap~proval, license, rule
or regulation issued under Title I of the Act.
(b) Any amnendments, additions, revisions, or supplements of this
Supplemental Code, proposed by Code Authority, a~nd approved by
'75%0 of the employers who are cooperating in the administration io of
this Code, shall be in full force and effect upon approvalR b3y the

Applicant imposes and shall impose no inequitable restrictions on
membership therein1. The Supplemeneltal Code presented by it is not
designed to promote monopoly, and shall not b~e so construed or
applied as to oppress or eliminate small enterprises or discriminaate
against then, and is designed to effectuate the policy of the At~ct.

This Supplemental Code shall become effective and binding on all
persons engaged in the subdivision, on. the eleventh dlay after its
approval by the Administrator.
Approved Code No. 347. Supplement No. 7.
Registry No. 1300--04..