Supplementary code of fair competition for the hoist builders industry (a division of the machinery and allied products ...


Material Information

Supplementary code of fair competition for the hoist builders industry (a division of the machinery and allied products industry) as approved on June 12, 1934
Portion of title:
Hoist builders 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:
Hoisting machinery -- Law and legislation -- 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:
"Approved Code No. 347--Supplement No. 20."
General Note:
"Registry No. 1399-49."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004940648
oclc - 654808149
System ID:

Full Text







I' I
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 centsl

Approved Code No. 347--Supplement No. 20

Registry No. 1399--49

(A Division of the Machinery and Allied Products Industry)



This publica.Lion is for sale by the Superintendent of Documents, Government
Printing Ofcice, 1Waslington, D.C., and by district offces of the Bureau of Foreign
and Domestic Commerce.
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mlich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jackisonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 4089 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, M'inn.: 213 Federal Building.
New Orleans, La.: Room 225A, Customhouse.
New Y'ork-, N.Y.: 734 Custombouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphin, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.

Approved Code No. 347--Supplement No. 20



As Approved on June 12, 19~34




An application having been duily ma~de pursuannt to and in full
compliance with t~he provisions of Title: I of the National Industrial
Recovery Act, approved June 16. 193:3, for approval of a Supple-
menta~l Code of Fair Co~mpetitiojn for tihe Hoist Buildlers Subdivision
of Machinery and Allied Products Industry, and hearings having
been duly held thereon and the annexed~ report on said Supplemental
Code, containing findlings with r~espec~t thereto, having been made and
directed to the President:
NOWT, THEREFORE, on behalf of th~e Pr~esient of the ~Unitedl
States, I, Hugh S. Johnson, Administriator for TIndustriai l Recovery
pursuant to auithority vestedl in mie by Execuitive Ordters of the
PrPesident, includrinr jExecutive Or~der No. 65413-A, dlated December
30, 1933, and otherwrise do hereby incorporate by reference said
annexed report and do find tlhat said Supplemental C~ode comnplies
in all respects withi the pertinlent. prov~isions and will p,romo~te thre
policy and purposes of said Tit~le of said: Act; and do hereby order~l
that said Supplemlental Cod~e of Fair Comnpetition be and it is
thereby azpproved~ subject t~o the follow,ing conditions:
(2) That the proviisons of Article V'III, Section (a) in~sofnc as
they prescribe a w~ait.inga periodc between the filing with the Code
Aut.horityv (or such agency as many be desigrnated in the Sup~ple-
mental Code) and the effective date of price lists, as origiinally filed
and/'or revised price lists or. revised terms and~ conditions of sale. be
and they hereby are stayed pen~ding mly further order.
(2) ThaRt the provisiojns of t.hle sec~ond~ paragra~ph of Artic~le VIII
Section (d) be and they hereby are stayed pendling the eiubmission oj
sat~isfactory evidence concerning distribution of t.he products of the
Subdivision to the Administrator.
67078*-~657-102---34 L11

(3) That the provisions of Article IX, Sections 5 to 10 inclu-
sive, be and they thereby are stayed for a period of fifteen (15) days,
then to become effective unless I, by my further order otherwise
direct; within which time cause may be shown, if any there be, why
the above provisions should not become effective; and that the Tem-
porary Code Authority send notice of the stayv of these provisions
and of the opportunity to show cause why they should not become
effective to all known employers of the Subdivision.
HUGH S. JoHNwon,
Adm~inistrator fo~r Inzdustrial Recovery.
Approval recommended.
Di~vision Admzinistra~tor
~u~ne 19, 1934.


T'he WChite Howe9.
SIR: ThiS report relates to thie Supplemlental Code of Fair Comp~e-
tition for the Hoist Builder~s Subdivision of Mrachiner~y and Allied
Products Industry as proposed by the Hoist Builders Associatio~n.
A public hearing wFas held in W\ashingTton, D.C., on Decembler 4,
1933 and reconvened on Decemnber 21, 1933. The public hearings
w~ere conducted in accor~dance with the provisions of T~itle :I of the
National Industrial Recoverly Act. andc all persons were given full
opportunity to be hearld.

The Hoist Builder~s Sulbdivision, being truly representative of the
manufacturers of the prodlucts definedl in Ar~tcle II of this Sulpple-
mental Code, has elected to formulate and submit. a Supplemnental
Code of Fair Competition as provided in the second paragraphn of
Article I of the Code of Fair Com~petition for the Manchinery and
Allied Prodlucts Industry approved by you on the sevenlteenthh day
of March, 19341.
The Subdlivision includes the design, mannufactuire, contracting for
arnd./or subletting the mianufact unring for sale of hoists as specifiedlly
described in the definition of t.he Subdivision but does not include
hloists commonly known as contractors hoists, slusher hloist direct
lift hloist~s, simple cylinder h~oists, monorail hoists, trolly hoists, body
and dump t.ruck hoists.


This Subdivision has been severely affected by the recent. depries-
sion. This is ev'idenlced by t.he steady decline in annual sales since
1929. Annual? sales for 1932 w~ere 90 per cent below the 1929 level,
declining from $1,414,000 in 1929, to $135,000 in 1932. Inv1\ested
capital has declined 2.7 per cenlt since. 1929, while production capacity
has remained constant.
Employment in t~he Subdlivision? declined from 4f29 in. 1929) to
114 in 1932, or 73.3 per cent, and increased to 140 emlployees in
1933, or 22.8 per cent over t~he 1'932 level.
The effects of the 40-hour provision wit.h produlction at more nor-
mal levels miay be estimated on a basis of the 1930r-31 ~verag~e of
total mnan-hours per week divided by the number of hours prescribed
in the Code. After 1929, man-hours declined steadily from 22,760 to
a mninirmumn of 3,430 in 1932, or approximately 85 per cent. Mnr~I-
hours for 1933 have increased to i,980, or more than 100 per cent over
the 1932 level.

If it is assumed that the average man-hours for 193(931 are repre-
sentative of the volume of production for those years, and a reason-
able measure of mlan-hour requirements in a more normal period,
the adoption of the 40-hour week would require a force of approxi-
mately 260 employees, or about 60 per cent of the 1929 working level.
Approximately 70 per cent of the workers in June, 1933 were
working more than 40 hours per week. The average work week in
October, 1933 was 35.3 hours. With production remaining at present
levels, no increase in employment may be expected with the adoption
of the 40-hour week.
However,' owing to the impossibility of all employees of the Sub-
division working the mlaximum 40 hours, the average work week
will be shorter, say 36 assumed effective hours, and the employment
correspondingly greater, viz: 290 workers will be required to pro-
duce t~he 1930-1931 volume.
The minimum wage provisions proposed for the Subdivisions
which are operating under the Code for the M~Jachiner~y and Allied
Products Industry are based on a flat minimum hourly rate of 32
cents per hour for the South and the following city population dif-
ferentials for all other sections of the United States:
Over 50,000 populaltion_____-_----- 40 cents per hour
over 10,000 to 50,ooo population-- _--- ...-- 38 cents per hour
10,000 population and under-- .-,--- 36 cents per hour
In addition to thle minimum wage rates shown above, the Code
provides that women engaged in substantially the same work as men
shall receive t~he same rate of pay as such men employees; that the
miinimum wage for women employees employed in plant operations
shall not be less than 87.5 per cent of the proper rate for the locality
in which employed as specified; and that the miinimum in the South
shall be not less than 32 cents per hour.

Estimated number of factory toorkiers receiving less than designated hourly rates

Distribution of factory
workers receiving less
than the minimum re-
Proposedl minimum hourly rates grls flcto
Approximate Approximate
percent number

40 cents (other U .S.)..~~~--...~ ~ -................................ 23. 7 53
38 ce t ( t er U .. .. .. .. .. .. .. .. .. .. .. .. .. .19. 5 44
36 cents (other U .S .) _........ .... ... .... ... .... .... ... .... .... 15. 4 35
32 cents (South)....... ........................................ -............ 16. 3 23

Based on the distribution as of June 15, 1933 and on the specified
percentages of the number of factory workers receiving less than
the designated rates shown in the above table, the adoption of the
proposed minimum rates will probably cause an mecrease in factory
payrolls. The estimated increase as of June 15, 1933, regardless of
location of thle workers, will probably, under the most favorable
conditions, not exceedl 60 penr cent. assuming only upward adjustment
in the b~rack~ets below the! 40 cent minimumin and no change in man-
hlour requirements.

Distribution of the number of factory workers r~eceiving classified
rates in the specific areas are not. available. Cornsequently, it is only
possible to estbimate the approximate numnber of factory workers who
will receive the benefit of thne proposed minImumr ho~urly3 rates, rg-
gar~dless of location, on the basis of the number of fac~tory workers
receiving less than the designated hourly rates as of June 15, 1933.

Article I states thie purpose of the Supplemnent al Codte.
Article II accurately defines the p~roduicts and specific terms ap-
plicable to the Hloist Buildlers Subdlivision as used in this Supple-
mental Code.
Article III provides for the adoption of the employment pr~ovi-
sions of t~he National Industrial Recovery Code of the Mhachinery
and Allied Product~s Indust~ry, as approvedj by you, an-d as from time
to time amended.
Article IV pro~vide~s for the adoptionl of Articles II, VI, VIII and
IX of t~he National Indlustrial Recovery Code of t'he. Machinery and
Allied Products Indjustry, in accordance with the conditions in this
Article governiing their adoption.
Article V' establishes a Cod~e Author~ity consisting~ of the Executive
Commnittee of the Hoist Builders Association conisistingr of not less
than four and not more than1 sevenl mlemblers and one additional
memlber to b~e elected by emplloyer s not. mlemb~ers of the Alpplicant.
In addition to tlhe members namedl above, the Administr ator may, in
his discretion, ap~point one member without vote and without expense
to this Subdcivision. Inl addition to thle organization! of the Code
Authority, t~he powerc1s andt duties thereof ar~e also outlinedl in this
Article V'I establishes a uniform accounting system, and method of
cost finding anld. or estimnating to~ be usedl by all empyloyer~s in, the
Article VIII p~rov~ides that. no products of the Subdivision shall be
sold or off~eredl for sale below a r~easonable cost when thie Code
Authority determiiines that anl emergiency exis~ts.
Article V'III provides for methods of setting up, revising and
filingr price lists and dliscount sheets and terms ofn sale and payment.
Article IX sets forth trade practices for the Sub-divisioni.
Article X. No provisions of this Suplellmental Codte relating to
prices or terms of selling, shnipping or marketing. shall apply to
export trade or sales or shipments for exp~ort trade, as defined ~by
the terml' exort ini this Article.
Article XiI. This Supplemnental Code andl all provisions thereof
are made subject to the right of t~he President., in accor~dance with
Subsection (b) of Section 10 of the Act, from time to time to cancel
or modify any order, approv\al, license, rule, or regulation issued
under said Act.. Provision is also madle thart amendmnents, additions,
revisions, or supplements proposed by Code Authority may~ be sub-
mnittedl fromt timie to time for the approval of thie Admlninis;t rator.
Article XII. No provision of this Supplemental Code shall be so
applied as to permit monopolies, or monoopolistic practices, or to
eliminate, oppr'ess, or discriminate against small enterprises.

Article XTI~II. This Supplemental Code shall become effective on
the elevenlth day after its approval by the Administrator.

The Assistant Deputy Administrator in his final report to me on
said Supplemental Code having found as herein set forth and on the
basis of all t~he proceedings in this matter:
I findl that:
(a) Said Supplemental Code is well designed to promote the pol-
icies and purposes of Title I of the National I[ndustrial Recovery
Ac, including removal of obstructions, to the free flow of inter-
state and foreign commerce which tend to diminish the amount
thereof and will provide for the general welfare by promoting the
organization of industry for the purpose of cooperative action
among the trade groups, by inducing and maintaining rmited action
of labor and mlanagoement under adequate gaovernmental sanctions
and supervision, by elimlinatinga unfair competitive practices, by
promoting the fullest possible utilization of the present productive
capa~icit orf indulstries, by avoidi;ng undue restriction of~ production
(except. as mnay be temporarily requiredd, by increasing the consump-
tion of industrial and agricultural products through increasing pur-
chasing power, by reducing and relieving unemployment, by imn-
proving standards of labor, and by otherwise rehabilitating industry.
(b) Said Subdivision normally emnploy~s not more than 50,000
employees; anld is not classified byv me as a major industry.
(c) The Supplemental Code: as approved complies in all respects
with the pertinent provisions of said Title of said Act, including
without limitation Subsection (s) of Section 3, Subsection (a) of
Section 7,? and Subsection (b) of Section 10 thereof ; and that the
applicant association is an industrial association truly representative
of t~he aforesaid Subdlivisions; anld t-hat said association unposes no
inequitable restrictions on admission to membership therein.
(d) The Supplemental Code is not designed to andl will not permit
monopolies or monopolistic practices.
(e) The Supplemental Code is not designed to and will not elimi-
note or oppress small enterprises and will not operate to discriminate
against them.
(f) Those engaged in other steps of the economic process have
not been dleprived of thle right to be heard prior to approval of said
Supplemental Code.
For these reasons, therefore, I have approved this Supplemental
Codec, provided that certain provisions relating to price publication,
trade practices, and Article VIII, Section (e) are stayed, as stated
in the Order.
A dm~inistraor.
JUN E 12, 1931




To effectuate the policy of Title I of the National Industrial
Recovery Act, the following provisions are establishedl as a Supple-
mental Code of Fair Competition for the Hoist Builders Subdivi-
sion of the Machinery and Allied Products Industry, and together
with the Code of FaLir Competition for the M~achinery and Allied
Products Industry to which it is a Supplement shall be the standard
of fair competition for this Subdivision, and shall be binding on
each employer therein.

"LApplicant' means the Hoist Builders Association, a trade organi-r
zation truly representative of this Subdlivision, all members of which
are engaged in the manufacture for sale of the products of the Hfoist
Builders Subdivision of the M1achinery anid A~llied' Products
"L Industry "' means the Miachinery and Alliedi Products Ilndust~ry
as defined in its Code of Fair Competition as approved by the Presi-
dent, March 17, 19:34, and as such definition may. from time to time
be amended.
"' Subdivision "' means the Hoist Builders Subdivision of the 3Ms~-
chinery and Allied Products Industryv as defined and set forth in (13) of Article II of the ~Code of Fair Competition for
the MIachinery and Allied Pr~oducts Industry as follows:
Hoist Budlders Subdivision means the design, manufacture, con-
tracting for and,'or subletting the manufacturing for the sale of
hoists operated by electricity, gas, oil, air or steam, for hoisting or
hauling materials or men and for all industrial uses in. which such
type of hoists, commonly known as mine hoists are applicable, in-
cluding spare, repair and replacement parts thereof, and includes all
those so engaged; provided that the Subdivision shall not include
those types of hoists, including spare, repair or replacement parts
thereof, commonly kinown as contractors hoists, slusher joists, direct
lift hoists, simple cylinder hoists, monorail hoists, trolley hoists,
body_ and dump truck hoists."'
Code means the Code of Fair Comnpetition for the M~achinery
and Allied Products Industry, as approved by the PIresident., and
as from time to time amended.
Person means a natural person, a partnership, a corporation,
an association, a trust, a trustee, a trustee in bankruptcy, a receiver,
or other entity.;
Employer" means any person engaged in thlis Subdivision of
the Industry, either on his own behalf or as an employer of labor.

Employee means any one who 'is employed in the Sub~division
by any such employer.
"' The Act' means Title I of the National Industrial Recovery Act.
The Presid~ent "? means the President of the United States.
The Admlinistrator means the Administrator for Industrial
Basic Code Aut~hority means the Code. Authority for the
Machinery anld Allied Products Industry as constituted by the Code.
"' Code Aut.h~orityr "' means the Code Aut~hority constituted for this
Subdivision as provided by the Code and by this Supplemental Code.
G~roulp Code Authority means the Code Authority for any group
or classification of products within this Subdivision, constituted
under t~he authority of Article V 'of this Supplemental Code.
Publish "! means to make available to the public.
"' Principles "! means all essential characteristics.

The following Articles of thie Code, viz: Article III, Working
Hours ~'--Article IV,? Wages "; and Article V;, General Labor
Provisions ", are hereby made a part of this Supplemental Code,
with t~he same effect as; if they were written into this Supplemental

The following Articles of the Codle, viz: Article II, Definitions ";
Artile V, administrationn ", to the extent that they shall be
applicable to this Supplemental Code as such or as it may hereafter
be administered As an autonomous Code; Article VIII, Miodifica-
tions andi Termnination "; and Article IX! W'ithdlrawal are hereby
made a part. of this Supplemental Ciode with the samie effect as if
they w-er~e written into this Supplement~al Code.

To admiinister and supervise, and facilitate the performance of the
provisions o~f this Supplemental Ciode, there is hereby established
a "L Code Authority."'
(a) The Code Authority for this Subdivision shall consist of
(1) The Executive Commlittee of the Hoist Builders Association,
consisting of not less than four and not more than seven members.
(2) One additional member to be elected in any fair manner,
with t~he approval of the Administrator, by employers in this Sub-
division not members of the Applicant, who are cooperating in this
Supplemental Code, as described in Section (e) hereof, if so desired,
by such non-members.
(3) The Administrator may, at his discretion appoint one addi-
dtional member (without vote and without expense to the Sub-
(b) Each trade or industrial association directly or indirectly par-
t~icipating in the selectionn or activities of the Code Authority shall
(1) impose no inequitable restrictions on membership, and (2) sub-
mit to the Administrator truee copies of its articles of association, by-
laws, regulations, and an~y amendments when made thereto, together

with such' other information as to membership>, organization, and
activities as t~he Administrator mlay deem necessary to effectuate
the purpose of the Act.
(c) In order that the Code AuthorityS shall at all times be truly
representative of the Subdivision and in other respects comply with
the provisions of the Act., the Administrator mnay provide such hear-
ings as he many deem proper; and thereafter if he shall find tha~t t~he
Code Authority is not truly representative or does not in other
respectsj comply with the provisions of the Act, mnay require an
appropriate modification in the method of selection of th rCode
Authority, or any Group-Code Author~ity.
The. Code Aulthority may adopnt ~rules and regulations ~for its pro-
cedure and employ such personnel as it, may deem necessary.
(d) Any employer in this Subdivision shall be eligible for miem-
bership in Hoist Builders Association.
(e) Anly employer in this Subdivision shall be entitled~ to vote,
subject to the provisions of Section (a) hereof, at the election of, and
share in the benefits of the activities of the Code Authority, and
may participate in alny~ endeavors of the C'ode Aiuthority, in the
preparation of any revisions of, or adrditions or supplements to, this
Supplemental Code, by paying his pr1oper pro rata share of the rea-
sonable cost of creating and administering it, as determined by the
Code Authority, such vote of employers inl this Subdivision to be
determined subject to the provisions of Section (a) hereof, by a
vote of employers who are at that time engaged in manufacturing
such product, and are at that timne cooperatingr in this Codec, as above
described in t~hi~s Sect.ion (e) of this Art~icle Vi, east. concurrently in
each of the tw\o following methods: (1) by one vote of eachl eml-
ployer. (2) By vote of employers wecigh~ted on thle basis of one
vote for each $25,000O of sales booked of such product of said ema-
ployers wvho 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 en-
titled t~o 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, east and computed
in each of the two methods hereinabove provided.
(f) Emnployers in this Suibdivision having a common interest and
com mon problems, mnay be grouped by C'ode Aulthority for
administrastivre purposes into various Group, 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 ma~de to Code Authority, that pro-
visions of this Supplemnental Code have been violated by any ern-
ployer, this Code AuthorityS or proper Grouip-Code Authiority, mnay
cause such investigation or audit. to be made, t.o the, extent pecr-
mitted by the Act, as may be deemed necessary. If such investigan-
tion is mande by Group-Code Authority, it shall report the results
of such investigation or audit to Code Authority for action.
Unless Basic Code Authority shall takte jurisdiction, the Code
Authority shall have thle right to investigate to the extent permitted

bythe Act, and analyze any transaction coming under the scope
ofthis Supplemnental Code, on which any unf air competition is
alleged, to show evidence of any violation of this Supplemental
Code, to report any such alleged violation eto the proper author-
ities for action.


The Code Authority shall cause to be formulated an accounting
system and methods of cost finding and/or estimating capable of
use by a~ll employers of the Subdivision. After such system and
methods have been formulated, full details concerning them shall
be made available to all employers. Thereafter all employers shall
determine and/lor estimate costs in accordance with the principles
of such methods.


(a) W~hen t~he Code Aut~horityv has reason t.o believe that an emer-
gency exists as to any product, or products of thle Subdivision, and
that the cause thereof is destructive price-cutting such as to render
ineffective or seriously endanger t~he purposes or the maintenance
of the provisions of this Supplemental Code, the Code Authority
may cause an investigation of costs and pricing to be made by an
impartial agency in order to determine the existence of the emer-
gencyy and the Code Authority may cause to be determined the low-
est reasonable cost of the product or products of this Subdivision,
such determination to be subject t~o such notice and hearing as the
Administrator may require. The Administrator may approve, dis-
approve, or modify the determination. Thereafter during the pe-
riod of emergency, no employer of the Subdivision shall sell or offer
to sell any product or products of the Subdivision for which the
lowest reasonable cost has been determined at such prices or upon
suIch terml~s or conditions of sale that. t~he buyer will pay less t.herefor
than thle lowest reasonable cost of such products.
Whenil it appears that conditions have changed, the Code Author-
ity, upon its own initiative or upon the request of any interested
party, shall cause the determination to be reviewed.

(a) If anld when the Code Authority of this Subdivision determines
thlat inl any branch or group of the Subdivision it has been the gen-
erally recognized 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 employer shall, within ten (10) days after
notice of such~ determination, file with the Code Authority a net
price list, or a price list and discount sheet, as the case may be, indi-
v~idually prepared by him, showing his current prices, or prices and
discounts, and terms of sale and payment, for such specified product,
and the Code Authority shall immediately publish and send copies
thereof to all known employers who ar~e cooperating; in this Sup-
plemental C~ode as described in Section (e) of Article V hereof.

Revised price lists and/or discount sheets and,'or terms of sale
and payment for such product may be filed from time to time t~here-
after with the Code Authority by any employer, but such revisd
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,'or terms of sale and payment, for such product, with
notice of the effective date specified, shall be immiedliatelyv published
andr sent to all known employers: whof alre coolperatinr inl this Sup-
plemental Code as described in Section (e) of Article Vr hereof, any
of whom may file, if he so desires, to become effective upon the date
when the re~visedl price list and,'or discount sheet und."'or terms of
sale and payment first filed shall go into effect, revisions of his price
lists and/or discount sheets and -or terms of sale and payment estab-
lishing prices or prices and discounts not lower or terms of sa~le and
payment not more favorable than those estab~lishedl in the revised
price lists and~/or discount sheets and/'or terms of sale and paynentt
first filed. Nothing in the foregoiner shall constitute. a limitation
upon thle right of any employer to fle revised lists fixings his own
prices, discounts and terms of sale and payment, 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.l
(b) If and when the Code Authority shall dettermine that in any
branch or group of the Subdivision not now selling its p~roduict 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 the same as, or similar to, the distribution
or marketing conditions in a branch or group of thle Surbdivision
where the use of price lists, with or without discount sheets, and
fixed terms of sale and payment, is well recognized, and that, a sys-
tem of selling pn 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 eachi employer of such
branch or group shall within ten (10) days after notice of such de-
termination, file with the Code Authority net price lists or price lists
and dliscoulnt. s~heets, ont~aining fixed terms of sale anid payment,
showing his current prices and discounts and terms of sale anld pay-
ment, and such price lists and /or discount sheets and./or terms of sale
and payment may be thereafter revised in the manner hereinabove
provided; provided, however, that the Code 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 para-
graph (b) of Article VIII, unless the employers who are at that
time engaged in manufacturing such product and are at that time
cooperating in this Code, hav~e given affirmative consent to such de-
termination. Thle eligibility requirements, method, and effect of
such voting shall be the same as provided in Section (e) of Article V.
Each employer shall prepare and shall furnish the Code Authority
for distribution with such number of copies of his price lists and/or
discount sheets and terms of sale and payment as Code Authority may
I See paragraph 2 (1) of order applroing this Code.



(c) No employer shall sell directly or indirectly by any means
whatsoever, any product of the Subdivision covered by provlreions of
this' Article VIII at a price or at discounts, or on terms of sale and
payment, different from those provided in his own current net price
lists, or price lists and d~isc~ount sheets, provided that nothing in the
above shall prevent an employer from adding to his own price and/or
price list and discount sheets by increasing his job price to include
unusual selling, engineering, servicing, financing, financial risks, or
other similar special charges, (except as provided in Alrticle. VII
above), provided, however, 'that in the event of an employer quoting
a higher price t~han- the price published in his own price list and/or
price list and discount sheets, to take care of unusual* selling, en-
gmieering, serving, financing, financial risks, or other sunilar special
charges, he shall not subsequently quote a -lower price on said pro-
spect~ive sale than that price first quoted, except in accordance with
revised price lists duly filedl or unless he simultaneously eliminates
part or all of the unusual engineering, servicing, financing, financial
risks or other simiilar special charges, for which a corresponding
reduction only may be made.
(d) No employer shall sell t.0, or through any broker, jobber,
commission account or sales agency, (this is known in the trade as
"' pooledl buying "), who or which is in fact an agent for an organiza-
t~ion of indlustriall consumers, with the result that any industrial con-
sumler secures a discount, allowance or price other ~thatn the discount,
allowance or price provided for- Iin the emrployersow curnnt
price lists or price lists with discount sheets.
No employer shall evadle any provision of this C~ode by selling to
or through any dealer, jobber, distributor or other selling agency
which shall fail to agree to resell in accordance with the provisions
of Articles VII, VIII, and IX of this Supplemental Code.2
(e) WZherever by the provisions of this Article VIII an employer
is or may be required to or permitted to file terms of sale and pay-
ment., such terms shall mean usual or standard terms, and to cover
any special and 'or unusual terms definite formulae for determining
such special and,-'or unusual terms shall be filed.
(f) If and when Code Aut~hority shall determiine that it is un-
desirable to continue t~he filing of net price lists and/'or price lists
with discount sheets and/'or fixed terms of sale and payment on any
product in respect of which such filing has heretofore been required,
such filing shall cease and the provisions of this Article shall not
apply to such product unless and until C~ode Authority shall again
determine that such filing be made.


Each of t~he following acts and practices is deemed to be inimical
to t~he best interests of this Subdivision, and of the public, and each
is, therefore, hereby declared to be, and to constitute, an unfair
method of competition, viz:--
1. The secret offering or making, to any customer, agent, fiduciary
or representative of customer, ofany payment or allowance of a
= See paragrph 2 (2) of order approving this Code.
SSee paragraph 2 (3) of order approving thle Code.

I I!

rebate, refund, commission, credit, credit subsidy, unearned discount
or excess allowance, whether in t~he form of mnone~y or otherwise, or
anly special service or privilege, for the purpose of influencing a sale.
No employer of the Subdivision shall give, permit to be given, or
offer to givre, anything of value for the purpose of influencing or
rewarding the action of any employee~, agent, or representative of
another in relation to the business of the employer of such em~ployvee
or the principal of such agent without the knowledge of such emi-
ployer or principal, provided that no provision of this Code shall be
construed t~o prohibit free andl general distr~ibutionl of articles comn-
mlonly used for advertising, except so far as Su1ch articles are netually
Used for commercial bribery as hereinabove defined.
2. Any discrimination between purchasers, by the sale of any arti-
cle having a published price, at anly price other than the seller's
published price, byr means of dlirect or indirect. price concessions, or
by means of any privilege not. extended to pur~chasers generally.
3. Untruthifully advertising, representing, or marking nany product,
with intent to deceive or mislead.
4. The publishing or circularizing of threat of any suit. for in-
fringement of patent or trande mark, or of any other legal proceedings,
not in good faith, wvhich~ would tend to harnss a. competitor or
intimidate his customers.
5. The taking in trade or necepting in trade any secondithandc or
old equipment in part payment for new, p~rovided, however, that thlis
provision shall not be construed to prohibit in anyr w~ay the return
within six months of the date. of shipment, to the V'endor and the
allowance of any fair adjustment thereon by the V'endor of any prod-
uct which shall not meet the purposes for which it was sold. Alny
employer may, however, assist in finding a bona fide buyer for said
equipment, but shall in no case take any tinanicial interest in it.
6. So long as the maker of anyr product of this Subdivision bear-
ing the maker's name or trade mark, which has required special
designing, research or dlevelopmllent expense (or his successor in busi-
ness) continues to make and supply such spare, repair and replace-
ment parts therefore, supplying repair parts for such poutof hi
Subdivision unless (a) the name of the maker of succoidnn
genuine repair parts shall be plainly marked on each part (or if this
is impracticable on the package or tag) so that the ultimate user is
clearly informed by marking on such par~ts, packages, tags and in
catalogues, price lists, quoted prices, advertisements or advertising
literature of the manufacturers of such copies non-genuine parts that
said parts were not made by the original maker of the products of
the employVer of this Subdivision.
7. The furnishing to any purchaser, and/or his agent, directly or
indirectly of detailed shop drawings of the products of this Subdi-
vision without filing a statement of such proposed transaction with
the Clode Authority which may approve or with the approval of the
Administrator disapprove the* transaction within ten (10) dlays by
written notice to the employer.
8. Disseminating false or misleading information relative to com-
petitor's products, selling prices, reputation, credit or financial
standing, ability to perform work, or labor conditions.


3 1262 08852 5711

9. Inducing or attempting to induce a bm~reath~,ormal~udompea of;: ;I'
contract covering the purchase or sale of the produt*hisz~arl .. 8u
division; prvdd hwvrth nhig inthsStonhl e
construed to prohibit the attempt on the part of the awater I or;'
licensee under any patent to induce a purchaser or futur~e~l:lICpha
of any product which shall infringe said paLtent, to avald ~-gate
purchase. 0
10. It shall be an unfair trade practice for any employer to engage I
2n destructive price cutting.


The provisions of this Supplemental Code concerning prIc ing. an
inarketing (Articles VII, VIII and IX) shall not appl to .direct
export sales of any product. A similar exemption may bega te
by the Code Authority of this Subdivision as to sales of any prodd
destined ultimately for export. Unless otherwRise determined by thie
Code Aut~hority the term export shall include all shipments to

a paces wt out t e several states o t e nte Sates an t e
District of Columbia; provided, however, that no shipment to any
territory or possession of the United States shall be considered up
export when any employer is.engaged in the industry in such terri
tory or possession.






(a) As provided by Sect~ion 10 (b) of the Act, the President mray
fromt timle to time cancel or modify any order, approval, license, role
or regulation issued under Title I of the Act.
(b) Study of the trade practices of this Subdivision will be con-
tinuedl by Code Auithority, with the intention of submitting, from
timle to time, after its effective date, amendments or additions to, or
revisions of, or supplements to, this Supplemental Code.
Any such amendments, additions, revisions, or supplements, pro-
posed by Code Authority, and approved by a vote of the employers
shall be in full force and effect upon approval by the Presid~ent,
The eligibility requirements, method, and effect of such voting shatll
be thle same as provided in Sect~ion (e) of Article V.


The Supplemental Code presented by Applicant is not designed tJo
promote monopoly, and shall not be so construed or applied as to
oppress or eliminate small enterprises or discriminate against them,
and is designed to effectunate the Policy of the Act.


This Supplemental Code shall become effective and binding on
all persons engaged in this Subdivision on the eleventh day after its
approval bly the President.
Apprlov~ed Code No. 347. Supplement No. 20.
Re~gistry No. 1390--40.


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