Supplementary code of fair competition for the kiln, cooler and dryer manufacturing industry (a division of the machiner...


Material Information

Supplementary code of fair competition for the kiln, cooler and dryer manufacturing industry (a division of the machinery and allied products industry) as approved on June 12, 1934
Portion of title:
Kiln, cooler and dryer manufacturing 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:
Cement kilns   ( lcsh )
Drying apparatus -- United States   ( lcsh )
Machinery industry -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1399-50."
General Note:
"Approved Code No. 347--Supplement No. 21."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004940656
oclc - 654807134
System ID:

Full Text



I' 'I
Fur sale by the Baperintendent of Documents, Washington, D.C. - Price 5 centa

Approved Code No. 347--Supplement No. 21

Registry No. 1399---50





(A Division of the Machinery and Allied Products Industry)





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

Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, MIass.: 1801 Custombouse.
Buffalo, N.Y'.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Obicago, Ill.: Suite 17i06, 201 North W~ells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, M~ich.: 801 First National Bank Building.
Houston, Tex.: Chnmber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jakh~onville, Fla.: Chamber of Commerce Building.
Kansas City, M~o.: 10'28 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadwray.
Louisville, KyS.: 408 Federal Building,
MIemphis, Tenu.: 220 Federal Building.
M~inneapoclis, RIinn.: 213 Federal Building.
New Orleans. La.: Room 225-A, Custombouse.
New Y'ork-, N.Y.: 7~34 Customhouse.
N~orfolk, Va.: 408 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, 310.: 506 Olive Street.
San Franelsco, Calif.: 310 Customhouse.
Seattle, Wansh.: 809 Fed~eral O~ice Building.

Approved Code No. 347---Supplement No. 21



As Approved on June 12, 1934




Aln application having been duly made pursuant to and in full
comnpliance. with the provisions of Title I of the National Industrial
Rec~overy3 At, approved June 16, 1933, for approval of a Supple-
mlentanl Code of Fair Comnpetition. for the Kiln, C~ooler and Dryer
Mfanufac~tu~~nrin Sub~division of Machinery and Allied Products In-
dusctry,~ and hearings having been duly held thereon and the annexed
report on soid Supplemental Code, containing findings with respect
thereto, having been made and directed to the President:
N~OW, THCIEREF'ORE, on behalf of the President of the Unmited
St~t~es! I, Hugh S. Johnson, A-dministrator for Industrial REcover,\~1y,
pursuant to authority vested~~ in me by Executive Orders of the
Presidentt, including Executive Order No. 6543--A, dated December
30), 193:3, andi otherwnise ; do hereby incorporate by reference said an-
nexed2 report and do find that said Supplemental Code complies in
a~ll r~esp>ects with the pertinent provisions and will promote t~he policy
and purposes of said Title of said Act'; and do hereby order that said
Suppleme~ntal Code of Fair Completition be and it is hereby aypproved~
subject t~o the following conditions:
(1) That the p>rovisions of -Article VIII, Section (a) insolfalr as.
th~ey prescribe a7 waiting~ period between the filing with the Code,
Authlority (or su~ch agency\ as may be desigrnated! in the _Supp~leme~ntal1
Code) an~d the! effective da~te of price lists, as originally filed and/or
revrisedl pr'icet lists or rev~ised~ terms and c~onditio~ns- of sale, be and.
they hereby are istay~ed pending my further order.
(2) Tha't. the pirovijsions of the second paragraph of Article VIII,
~Section (d) be andi they hereby are stayed pending the submnission.
of satisfact~ory evidence colncernmng distribution of the products
of the Subdivision to the Admlinistfrator1.
67283* ---057-I-1 0)--34(1

(3) That the provisions of Article IX, Sections 5 to 10 inclusive;
he and they hereby are stayed\ for a period of fifteen (15~) day~s;
then to becomer effective unless I, by my further order otherwise
direct.; witinl whichl t~imie cause mnay be shown, if any there be,
why the above p~rovisions should not become effective; and that t.he
Temp~orary~ Code Authlorityv send notice of the stay of these pro-
visions andi of thle opplor~tunity to show cause wvhy they should not
become effective to all known employers of the Subdivision.
Admrinisrtra tor for~ Idusztrsial Recovery.
Appr~oval recommlentlded:
Divlision Admt~nin istrator.r
Wa~smrNGTON, D.C.,
Jun~e 13, 193~4.


TF~ lhe 2I W ~ie Huse1.
Sin: This report relates to thle Sup~plemiental Code of Fiair Com-
petition for the Kiln, Cooler and Dry~er Manufafctuiring Suibdivision
of 1Machiner~y and Allied Produc~ts Industry as prop~osed byr the
Kiln, Cooler andl Drf'er Manufacturers Association.
A public hearing w\as h~eldl in Wa~shington D).C. on Decemiber 4,
1933 and reconvened on D~ecembetr 21, 1933. Thepulchrns
were conducted in accordian~e withl the pr1ovisions of ul hrigTitle I. of the
National Industrial R~covery~c\ Act and all persons were given full
o~pportunity to be heardt.

The Kilni, Cooler anid Dryer Subliv;ision, being truly r~epresentan-
tive of the manu~factrturer of the prodlucts dlefned in Article II of
the Supplemiental C'ode, has electedl to formulate and submit a Sup-
plemental Code of Fair Comp~letition as provided in the second
paragraph of Article I of th~e C'ode of Fair CompIetitionl for the
Machinery~ andi Alliedl Pr~odurcts Industry, approved by you on the
seventeenthi day of M~ar'Ch, 1934.
The Subdivision as definedl in the Supplemental Code includtes the
design, ia n fact ure, con tract ing for~ or suIlet~tingr t~he l manulfacrtulrin g
for the sale of Kilns, C'ooler~s andi Dryers.


This Sublivision ha~s been severely affectedl by the rIecent. de-
pression. T`hisi is evidlenlced by the steady~ decline in annnual sales
since 1928. In 1932 sales were nerlyn~~ 90 per cent below~ the 1929
level, dlec~liningr from $:3,421.00(0 in 1090, to $352,000 in 1932. The
Subdivision ha~s estimantedl sales at $100rC,000 for 1933, which indicates
a further d.eclinie of 71.6 per cenit from the 1932L level.
Estimantes of appr~oxuimate employmllent, including office employees,
indicate that the emnploymnent declined fr~om 654 persons in 1929, to
170 persons in 1933, or 74 per cent.
No data. are availabllle on aver~a e hlours of labor or ave~rage wage
rates for this Subdivision. Thne association claims th~at. normal op-
eraztionl has always required about 48 hours per week, one shift only;
that wnages paid havr alwTayvs been adlequate; and that no child labor
has ever been employedl.
In absence of detailed statistical information, no adequate analysis
can be submitted as to the effect of thre 40-'hour pr~ovision in thce
Supplemental Code.
The minimum wage provisions for the Subdivisions which are
operating under the Code of the Mlachinery and Allied ]Products
Industry, are based on a flat minimum hourly rate of 32 cents per

h~our for the South and the following city population differentials
for all other sections of the United States:
Over 50!000 population, 40 cents per hour; 10,000 to 50,000 popu-
lat~ion, 38 cents per hour; 10,000 population and under, 36 cents per
hou r.
In addition to the mninimumi wage rates shown above, the Code
provides that women engaged in substantially the same work as
mnen, shall receive the same rate of pay as such mlen employees; that
the minimum wage for women employees engaged in plant operation
shall be not less than 87.5 per cent of the proper rate for the locality
in which employed as specified; and that the minimum in the South
shall be not less than 32 cents per hour.
A distribution showing the number of factory work-ers receiving
classified hourly rates is not available. Consequently the number of
factory wvorkrers receiving less than the specified minimum rates pro-
vided in the Code cannot be estimated, nor the effect which the mini-
mum rateps will have on the payrolls of this Subdivision.
Article I states the purpose of the Supplemental Code.
Article II accurately defines specific terms applicable to the
Subdivision as used in this Supplemental Code.
Article III provides for the adoption of the employment p~rovi-
sions of the National Industrial Recovery Code of the Machinery
and Allied Products Industry, as approved by you, and as from time
to time amended.
Article IV provides for the adoption of Articles II, VI, VII~I,
and IX of the National Industrial Recovery Code of the Machinery
and Allied Products Industry, in necordance wlith the conditions of
this Article governing their adoption.
Article V' provides for the establishment of a Code Authority and
defines its powers and duties.
Article VI pr1ovides foi- an accounting system and methods of
cost finding andl..'or estimating.
Article VII provides that no products of the Subdivision shall be
sold or offered for sale below a reasonable cost when the Code
Authority determines that an emiergrenc~y exists.
Article VIII provides for methods of setting up, revising and
filing price lists and discount sheets and terms of sale and payments.
Article IX sets forth trade practices for the Subdivision.
Article X~. No provision of this Supplemental Code relating to
pricing and marketing shall apply to direct export sales or to any
product destined ultimately fo-r export.
Article XI. Thi~s Supplemental Code and all the provisions thereof
are expressly made subject to the right of the President, in accord-
ance 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 modi-fications
may be submitted by the Code Authority to the Administrator for
Article XII. No provision of this Supplemental Code shall be so
applied as to permit monopolies, or monopolistic practices, or to
eliminate! oppress, or discriminate against, small enterprises.

Article XII'I states the effective date of this Su~ppllementl Code.

The Assist~ant. D~epurty Adcmini~strator,~ in hnis final repor~lt to me1( On
said Supplemental Code h~avingi fouind as herein set f~orthl and on thie
basis of nil the proceedlings inl this matter:
I find that:
(a) Said Suipplemental Code~ is w~ell des~igned to promotellf8 the
policies andi purposes of Title I of the Nationlal Industrial Recovery
Act., including remo1val of obstrulctions to the free flow of inlter~state
and foreign commrrerce which tend to~ diminishn the amount there~of
and will provide for t.he general welfare byr prom~oting~ the or~gani-
zation of industry for the purpose of cooperantivet nation amnongb thle
trade groups by ind~ucingr and manintaining united action. of labor and
management under adlequate governmentanl sanctions and superv\isioni,
by eliminatingf unfair co-mpetitive practices, by promnoting the full-
est possible utilization of the~ present pr1odluctiv e capacity of indus-
tries, by avoiding undue restriction of production (except as may
be temlporarily requiredt), by incr~easing the consumptionl of indus-
trial and agriculturanl products through inlcreasingr pjurchaing powe,~i
by redluci ng a ndl relievi ng unempl~loymentt by improving sta ndlards
of labor, and by otherw-isie rehnhilitating industry..
(b) Saidl Subdivision normanlly, emplloy~s not more than 50,000
employees; and is not classified by me as a major indusry.iS
(c) The ,SuppIlemellntal Codle as approved complies in all respects
w~ith the pert.inent provisionls of said Title of said Act, including
without limitation Subsecction (a.) of Section 3, Subsection (a) oof
Section 7, and Subsection (b) of Section 10 thereof ; and that the
apphenant assrociation is on industrial assoelation truly reprlesentH-
t~ive of the aforesaid Sulbdiv-ision; andl that said association imposes
no ineqluitable restrictions on admission to membership therein.
(d) The Supplemiental Code is not designed to and will not per-
mit monopolies or monopolistic piractices.
(e) The Suipplemiental Code is niot dlesigned to and will not elimin-
natee or oppress small enterprises andi will not operate to discrimni-
nate against then.
(f) Those engaged in other steps of the economic process have
not been dleprived of t~he right to be heard prior to ap~proval of
said Supplemnental Code.
For these reasons, therefore, I have approved this Supp~lemnental
Code, provided that certain provisions relating to price pulblica-
tion, trade practices, and Article VIII, Section (e), are stayed,
as stated~ in the or~der.
JUN E 12, 1934.




To effectuate the policy of Title I of the National Industrial Re-
covrery Act, the following, provisions are established as a Supple-
mental Code of Fair Competition for the Kiln, Cooler, and Dryer
M~ianufalcturing Subdivision of the M\'achinery and Allied Products
Industry, and together with thie Code of Fair Competition for the
Machinery and Allied Products Industry to which it is a Supple,
ment shall be the standard of fair competition for this Subdivision,
andl shall be bind;ngr on each employer therein.


"A~pplicant! "means the K'iln, Cooler, and Dryer Mlanufact~urers
Association, a trade organization truly representative of this Subdi-
visionl, all members of which are engaged in the manufacture for
sale of the products of the K~iln, Cooler, and Dryer Manufacturing
Subdivision of the Miachinery and Allied Products Industry.
"' Industry means the Mlachinery and Allied Products Industry,
as dlefined in its Code of Fair Competition as approved by the
President, Miarch~ 17, 1934, and as such definition may from time to
tim~e be amendedr.
Subtdivision ?' means the K~iln, Cooler, and Dryer Mlanufacturing
Subdivision of t~he M~achinery andZ Allied Products Industry as de-
finiel andt set forth in Paragraph (17) of Article II of the 1Code of
Fair Comnpetition for the M~achinery and Allied Products Industry
as follows:
Kiln, Cooler, and Dryer Mlanufacturing Subdivision means the
design, mlanufact~ure, contracting for or subletting the mlanufacturing
for the sale of K~ilnls, Coolers, and Dryers and Accessory Equipment
for the manufacture of Cem~ent andl Lime, and for use in all Mineral,
Mletallurg~ical, anid Ch~emical Processes, including spare, repair, and
lirelaee ntt par'ts thereof, and includes all those so engaged.h e3
"' Code means the Code of Fair Comnpetition for theMchnr
anid Allied Prodlucts Industry, as approved by the President, and
as from time to timne amendled.
L* Person "' meanls a natural person, a partnership, a corporation,
anl associattion, a trustt. a trustee, a trustee in bankruptcy, a. receiver,
or other entity.
"' Employe'r means any person engaged in this Subdivision of the
Industry, either on h~is own behalf or as an employer of labor.

Employee means any one who is employed in the Subdivision
by any such employer.
Thle Act means Title I of t~he N~ational ~Industr~ial Recovery
"L The President means the President of the U~nited States.
The Adm~inistrator means thle Ad~ministrator for I~nd~ustrial
"L Basic Code Aulthority means the Code Auth~ority for the Mla-
chinery and Allied Products Indulstry as constituted by the Code.
"' Code Authority means the Code AuthorityS co~nsrtitulted for this
Subdivision as provided by the Cod~e aind by this Supplemental
Group Code Authority means the .Code Authority for any
group or classification of products within this Subd~ivision, con-
stituited under the author~ity of Article V of this Supplemnental
Publish means to make avanilable to the puibic.
"' Principles "' meanis all essential ch~aracter~istiics
The followingr Articles of the Code, viz: Aitrticl III, Working
Hours "; Article IV, W'ages "; and Article VT, General Lab~or
Provisionls ", are hereby made a, par~t of this- Sup ena odwt
the same effect as if theyr were wrritten~l into this~ Suppllemlental Code.


Thle following Articles of the Cod~e, viz: Articl-e II, "' Definitions '";
Article VI, '"Admninistrattion "I, to the extent thalzt theyS shall be applli-
cable to this Sulpplementanl Code as such or as it ma~y hereafter be
administered as an autonomous Code; Aslrtile V'III,' Mod~ifications
and Termination "; and A~rt~icle: IXC, "' W~ithdllrawTal ""; are h~ereby
made a part of this Supplemnental Code with the samne effect as i
they were written into this SCupplemental Code.

To administer and supervise, and facilitate the performance of
the provisions of this Supplemnental Code, there is hereby established
a Code Authority."
(a) The Code Authority for this Subdivision shall consist of-
(1) The Executive C~onuit~tee of the Kiln, Cooler, and Dryer
Manu~factulrers Acssociation, connsistingr of not less than four and not
more than sevePn members.
(2) One additional miember to be elected in any fair mannner,
with the approval of the Administrator, by emnployers in this Sub-
division not members of t~he Applicant, whio are cooperating in this
Supplemental Code, as described in Section (e) hereof, if so desired,
by such nonmembers.
(3) The Administrator may, at his discretion appoint one addi-
tional member (without vote and without expense to the Subdivision).

(b) Each trade or industrial association .directly or indirectly
participating in the selection or activities of the Code Authority
shall (1) impose no inequitable restrictions on membership, and (2)
submit to the Administrator true copies of its articles of association,
by-laws, regulations, and any amendments when made thereto, to-
get~her wlith such other information as to membership, organization,
and activities as t~he Administrator mayV deem necessary to effectuate
the purpose of the Act.
(c) In order that, the Code Authority shall at all times be truly
reprsnaieo h udvso n in other respects comply wt
the provisions of the Act, the Administrator may provide such hear-
ings as he may deem~ proper; and thereafter if he shall find that the
C~ode Aut.hority is not truly representative or does not in other
respects comply with the provisions of the Act, may require an
appropriate modification in the method of selection of the Code
Authority, or any Group-Code Authority.
The Code Authority miay adopt rules a~nd regulations for its
procedlure and employ such personnel as it may deem necessary.
(d) Any employer inl this Subdivision shall be eligible for
membership in Kiln, Cooler, and Dryer MIanufacturers Association.
(e) Any employer in this Subdlivision shall be entitled to vote,
subject to the provisions of Section (a) hereof at the election of,
atnd shlare in the benefits of the activities of the Code Authority and
may~ participate in any endeavors of the Code Authority, in the
preparation of any revisions of, or additions or supplements to, this
Supplemnental Code, by paying his proper pro rat~a. share of the rea-
sonable cost of creatingr and administering it, as determined by the
Code Authority, such vote of employers in this Subdivision to be
determined subject to the provisions of Section (a) hereof, by a vote
of employers w-ho are at that time engaged in manufacturing such
product, and are at that time cooperating in this Code, as above
described in this Section (e) of this Article V, cast concurrently
in each of the two following methods: (1) by one vote of each
employer. (2) By vote of employers weighted on the basis of one
vote for each $25,000 of sales booked of such product of said em-
players who are: at that time engaged in manufacturing such prod-
ucts, made in the preceding five calendar years, as reported to the
Code Authority of this Subdivision. Each employer shall be entitled
to at least one such vote.
Except as otherwise provided in this Code any action taken at any
meeting of employers shall be by a majority vote, cast and computed
in each of the two methods hereinabove provided.
(f) Employers in this Subdivision having a common interest
and common problems, may be grouped by Code Authority for ad-
ministrative purposes into various G;roup Subdivisions, or product
In each Group Subdivision, or product classification, there may
be a Group-Code Authority approved, or appointed, by Code
(g) If formal complaint is made to Code Authority, that provi-
sions of this Supplemental Code have been violated by any employer,
the Code Authority or proper Group-Code Authority, may cause
such investigation or audit to be made, to the extent permitted by

the Act, as may be deemed necessary. If suich investigation is made
by Group-C~ode Authority, it shall report the results of such inves-
tigation or audit to Ciode Authority for action.
Unless Basic Code Authority hhall take jurisdiction, t~he Code
Authority shall have t~he right to invesctigante to the extent p~ermitted
by the Acct, and analyze any traznsactionn corning under the sco~pe
of this Supplemental C'ode, on w~hichl any unfair competition is al-
leged, to showv evidence of any violation of thiis Supplemental C'ode,
to report any such alleged violation to th~e proper nuthorities for


The Code Authority shall enuse to b~e for~mulatedl an necounting
systeml andl methodsn of cos~t findi~ngr and~r o estfimalting capable of use;
by all employers of the Subdlivisionl. After suich system and m~ethlods
have been formulated, full details concerning then shanll be made
available to all employers. Thereafter all emlploy~ers shall determine
and/or estimate costs in accordance wvith the pr~inciples~ of su~ch`1


(a) WVhen t~he Code A~uthor~ity hns reason to believe that an emner-
g~ency exists as to any product or pr1oduIcts of the Subd~iv'isionl, nmd
that the cause thlereof is dtest~uct~ive price-cultting such as to render
ineffective or seriously~ endanger the purp~oses or the maninteniance of
thle provision of this Supplemental Code, thle Codes Authority may
cause an investigationl of costs and pricingy to be made( by aIn imprl1tial
agency in ordter to determine the existen~ce of thie emergency and
the Code Author~ity may enuse to be dt~c~rminled the loweist reasonarble
cost of the prIoduct or products of this S~ubdciv\ision, such determnine-
tion to be subject to such not~ic~e and hearings as the Administ~rator
may req~uire. Th!e AdmijniStratfor may approv'l,\e~, disapp~rrovec, or
modify the determnilntion. Thereafter, during the period of emner-
gency, no employer of the Suiibdivision shall sell or offer to sell any
prodluct~s of the Subdlivision for which the lowest, r~esonable cost
has been determined at. such prices or uponl such terms or conditions
of sale that t~he buyer w-ill paLy less therefo than the lowe~st reason-
able cost of such products.
When it appears th~at conditions have chlanged, the C.odle Auithor-
ity, upon its owrn initiative or. upon the request of any! inter ~ted
party, shall causeu thle determilnation to be rev~iewed.

(a) If and when the C'ode Authorit~y of this Subdivision deter-
mines that in any branch or group of the Subdcivision it h~as been
the generally recognized practice to sell a specified product onl the
basis of net price lists, or price lists w~ith discount ,sheets, and fixed
terms of sale andt paymei"nt, eachi emp!loyeri shall. within ten (10)
days after notice of suich determination, file with the Code Authority

a net price list, or a price list and discount sheet, as the case may be,
indi~vidua~lly prepared by him, showingr his current prices, or prices
and discounts, and terms of sale and payment, for such specified
product, and the Crode Authority shall immediately publish and
send couples thlereof to all known employers who are cooperating
in this ~Supplementatl Code as described in Section (e) of Article
V hereof.
Revised price lists anld/or discount sheets and/or terms of sale and
payment for such product m-ay be filedl fromt time to time thereafter
with the Code Authlority by any employer, but such revised price
lists and .*or discount. sheets and/or terms of sale and payment shall
be filed with the Code Authority ten (10) days in advance of the
effective date. Copies of such revised price lists and,/or discount
sheets and lor terms of sale and payment, for such product, with
notice of the effective date specified, shall be immediately published
and sent to all known employers who are cooperating in this Sup-
plemnental Code as described in Section (e) of Article V hereof, any
of whom may file, if he so desires, to become effective upon the date
when the r~evised price list and/or discount sheet and~ or terms of sale
and payment first filed shall go into effect, revisions of his price lists
and/or discount sheets and ior terms of sale and payment establishing
prices or prices andi discounts not lower or terms of sale and payment
niot more favorable than those established inl the revised price lists
and 'or discount sheets and, or terms of sale and payment first filed.
Nothing inl the foregoing shall constitute a limitation upon the right
of any emlployer to file revised lists fixing his own prices, discounts
and terms of sale and paym-ent, which prices and discounts may be
either more or less favorable than those contained in any other price
list, to be effective as provided in the first sentence of this paragraph.'
(b) If tndl when the Code Authority shall determine that in any
branch or group of the Subdivision not now selling its product on the
basis of price lists, with or without discount sheets, with fixed terms
of sale and payment, the distribution or marketing conditions in said
branch or group are t~he somie as, or similar to, the distribution or
marketing conditions in a branch or group of the Subdivision where
the use of price lists, with or without discount sheets, and fixed terms
of sale and payment, is well recognized, and that a system of selling
on net. price lists or price lists and discount sheets with fixed terms
of sale and payment for such product should be put into effect in such
branch or group, then each employer of such branch or group shall
within ten (10) days after notice of such determination, file with the
Code Authorit~y net price lists or price lists and discount sheets,
containing fixed terms of sale and payment, showing his current
prices and discounts and terms of sale and payment, and such price
lists and/'or discount sheets and,/or terms of sale and payment may
be thereafter r~evised~ in the manner hereinabove provided; provided,
however, that. the Ciode Authority shall make no determination to
place any product of the Subdivision (not now on a price list basis)
on a price list basis, as provided in this paragraph (b) of Article
VIII, unless the employers who are at that time engaged in manu-
See paragraphl 2 (1) of order approving this Code.

facturing such product and are at that time cooperanting in this Code,
have given their affirmative consent to such deter~minati on. Th~e
eligibility r~equir~ements, mnethlod, and effect of such voting shall be
the same as providedl in Section (e) of ASrticle V.
Each employer shall pr~epare and shall furnish the Code Author-
ity for distr~ibut~iol with such31 numI1ber of copies of his price lists
and/or dliscount sheets and terms of sale anld paym~ent. as Code
Authority may prescribe.
(c) No employer shall sell dlirectly or indirectly by any means
whatsoever, any product of the Subhdivision covered by provision s
of this Article V'III at a. price or at discounts, or on terms of sale
and pay~ment different from those provided in. his own, current net
price lists, or price lists an~d dliscoulnt. sheets, pln;-rovde tfhat. nothingr
in the above shall p~revent an epnloyevr fromn add~ingr to his own
price and/,or price list and discount sheets by increasing~ his job
price to include unusual selling,, engineering., serviengr, financingr,
financial risks, or other similar special charges, exceptt as provid'edr
in Article VII above), provided, hlowever, that in the event of an
employer quoting a high-er price than the price published in hris owFn
price list and/or price list and discount sheets, to take care of un-
uisual selling, enigineering, serv\ic~ingr, financing, financial riskrs, or
other similar special charges, h~e shall not subsequen"tly' quote a lowetr
price on said prospective sale than that price first quoted, except in
accor~dance with revised price lists duly filed or unless he simnulta7ne-
ously elimninates part or all of the unusual e~ngineering, servicing,
financing, financial risks or other similar special chargers, for which
a corresp~onding redluc~tio.n only mnay be made.
(d) No employer shall sell to, or thr~ough any broker, jobber,
commission account or sales agency, (this is known in the trade as
"L pooled buyringr "), who or wvhichi is in fact an agent for an org~ani-
zationi of industi~rl consumers, with the result~ that any induistrial
consumer seculres a discount, allowa:nce, or price other than the
discount, allowance or price provided for in the employer's own
current net price lists or price lists with dliscount sheets.
No employer shall evad'e an~y provision of this code by selling to
or through any dea~lerl, jobber, dlistr~ibutor or other ~erlling agency
which shnll fai~l to agree to- resell in accordiance with the provisions
of Articles VII, VIII and IX~ of this Supplemental Code.2
(e) Wtherever by the provisions of this Article V7III an employer
is or may~ be required to or permittedl to file terms ,of sale and
payment, such ter~ms shall mean usual or standiardl terms, and to
cover any special and/~lor unusual terms definite formulae for deter-
mining such special and/or unusual terms shall be filed.
(f) If and when Code Authiority shall. determine that it is ulnde-
sirable to continue the filing of net price lists and/or price lists
w~ithl discount shet and/or fired terms of sale and p~aym~ent onz any
product in respect of which such filing has heretofore. been required,
suchfilig shll case nd t eprvisions of this Article shall not
apl such produsallcta unles and until Code Authority shall again
determine that such filing be made.
"See paragraph 2 (2) of order approving this Code.


Each of the following atcts and practices is deemed to be inimical
to the best interests of this Subdivision, and of the public, and each
is, therefore, hereby declared to be, and to constitute, an unfair
mnethlod of competition, viz:
1. The~ secret offeing.. or. making,, to any customer, agent, fiduciary,
or representative of customer, of any payment or allowance of a.
rebate, refund, commission. credit, credit subsidy, unearned discount,
or excess allowanlce, w~hether in the formi of money or otherwise, or
any special service or privilege, for thle purpose of influencing a
sale. No employer of the Subdivision shall give, permit to be
given, or offer to give, anything of value for the purpose of influ-
encing or rewarding the action of any employee, agent, or repre-
sentative olf another in r~elationi to the business of the employer of
such empyloyee or the principal of suchi agent without the knowledge
of such emplloyerr or principal, provided that no provision of this
Code shall be construedl to prohibit fr~ee and general distribution
of articles conunlonlyl usedl for advertising, except so far as suich
articles arIe actuallyl r usedl for commercial bribery as hereinabove
2. Any~ dislc~rimnination betw~eeni purcasersrs by the sale of any
article having a published price, at. any\ price other than the seller's
published price, byv meanis of direct or indirect price concessions,
or by mneans of any priv~ilege not extended to purchasers generally.
;3. Untruthfully avertising, representing, or marking any
product, with intent to deceive or mislead.
4.The publllishing or circularizing of threat of any suit for in-
fringemnent of patent or trade mark, or of any other legal proceed-
ings, not mn good faith, whiichi wouldi tend to harass a competitor or
intimidate his customers.
5. The taking in trade or accepting in trade any secondhand or
old equlipmnent in part payment for new provided, however, that this
p:rovision shall not be construed to prohibit in any way t~he return
wTithin six months of t~he date of shipment, to the Vendor and the
allowance of any fair adjustment thereon by the Vendor of any
product which shall not meet the purposes for which it was sold.
Any employer may, however, assist in finding a bona fide buyer for
said equlipmnent, b~ut shall in no case take any financial interest in it.
6., So longs as the maker of any product of this Subdivision bear-
ing the. maker's name or trademark, wIhich has required special
designing, research or development expense (or his successor in
business) continues to make and supply such spare, repair, and re-
placemnent parts therefore,! supplying repair parts for such product
of this Subdivision unless (a) the name of the maker of such copied
non-genin i mreptiai~r pats shall be plainly marked on each part (or
if hisisimpacicaleon the package or tag) so that the ultimate
user is clearly informed by such mnarkring on parts, packages, tags
and in catalogues, price lists, quoted prices, advertisements or adver-
Se paragraph 2 (3) of order approving this Code.

tising literature of the manufacturers of such copied non-genuine
parts that said parts wiere not made by th~e original maker of the
products of the employers of this Subdivision.
7. The furnishing to any purchaser, and or his agent, dlirec~tly or
indirectly of detailed shop drawings of the products of thlis Sub~ldi-
vision without filing a statemennt of such prop~osed transactionl l with
the Ciode A~uthlority which may approve or w~ithl the approval of the
Administrator disapprove the tran action w~ithlin ten t10) days by
wFritten notice to the employer..
8. Disseminating false or misleadliing information relative to com-
petitor's products, selling prices, reputation, credit or financial
planding,a ability to per~f~rm~ wrork, or labor condlitions.
D. Inducing or attempjtingr to induce a breach or. abandonment of
contract covering thle purchase or sale of thle p~~oroucts of this Sub.di-
vision; providedl, however, that noithing inl this Section shall be
construed to prohibit the attempt onl the par~t of the ow~ner of or
licensee under any. patent to indruce a p~ur~c~haser or futuiire purchlaser
of any product which sha~ll infringe said patentC, to avocid .uchi pur-
10. It. shall be an uinfair trade practice for any~ emloyer~~l to engage
in destructive price cutting~.


The provisions of th~iis Suppllemnental Codef concllernlingr p~ricing and
mark~eting (A-rticles V'II, V'III andr IX) shall niot apply to direct
export sales of any pr~oduct. A1 similar exesmptio n miay be granted
byr the Codle AuthorityS of this S~ubtlivision! as to sales of any product
destinedl ultimately for exp~ort. UnTileiss otherwise determinedc by the
Code Authority th~e term "-exp~ort "' shanll inc~ludle all shipmelnts s to
all places without the several States of the Uinitedl States andi the
District of Colum~bia; provu\idedi, howrever, that no shipmient to~ any
terr~itory) or possession oif th~e Unitedl State shall be con-ide~ilred art
export wThen any emnployer isj eingaedl in the~ industryv inl su~ch
territory or possession.

(a) As provided by Sectionl 10 (b) of the Alct. the President. mafy
from time to timne enncel or miodify any order,. approval, license. rule
or regullationn issued under Title I of thle Act.
(b) Study of the tr~ade practices of this Subdiviliion will be con-
tinued by Code Autho-rity, w~ith the intention of submit ing, fr~om
timne to time, after its effective date, amnendmlents s or addcitions to, or
revisions of, or supplemnents to, this Supplemetntal Clode.
Anyy such amiendmrents~, additions, revisions, or suppllements. pr~o-
posed by Code Aut~horitby, and approv-ed by a vote of the employers
shall be in full force andi effect upon approval by the President.
The eligibility requirements, method, and etfect of such votinig shall
be the same as provided in Section (e) of Article V.

14 3 1262 08852 5737

Th rooe uplmentoly Coderesented by A pplicant is not designd;
to pomoe moopoy, ad sall not be so construed or applied as to
oJppress or eliminate small enterprises or discriminate against them, '
and is designed to effectuate the policy of the Act.

This Supplemlental Code shall become effective and. binding on-all
persons enlgaged inl this Subdivision on the eleventh day after its3
appr~oval by t~he President.
Appiroved Codle No. 347'i-Supplernent No. 21.
Registry No. 139950. li