UNIV. OF FL LIB.
E)DOG UMEMI DEP T.
I __ I
For sale by the Superintendent of Documents, Wa~shington, D. C. - PriceC 5 enta
Approved Code No. 347--Supplement No. 44
Registry No. 1399--56
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
(A Division of the Machinery and Allied Products Industry)
AS APPROVED ON NOVEMBER 14, 1934
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
This publication is for sale byr the Superintendent of Documents, Government
Pr'inting O~tfice, Wa~shington, D. C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OFP THE DEPARTMENT OF COMMERCE
Allanltll, Ga.: 504 Post Office Buildling~.
IDirmninghani, Ala.: 257 Federal Building.
Bostonl, Masls.: 1801 Custombouse.
Buffalo, N. Y.: C~llembrer of Commerce Building.
Charleston, S. C.: Chamber of Comnmerce B3uildlin~.
Chicagol, Ill.: Suite 1706, 201 Nolrth W7ells Street.
Cleveland, Ohio: Chamber of Com~merce.
D~allas, Tex.: C'har mher of Commerce Building.
Detroit, M~ichI.: 801 Firs~t National B~ank Building.
Hiouston1, Tex.: Chamber of C~ommrere Buildling.
Indlianapolis, Ind.: Chamber of Commerce Buib~linlg.
Ja~cksom-ilille, Fla.: Chamber of Commerce Buiblingr.
Kianlsas C'ity, MoI.: 1028 Baltimor~e Avenue.
Los Anglesl~ Calif.: 1163 South Broadway.
Louisvrille, Ky. : 408 Fede'lral Buildling.
Memphis, Tenn.: 220i Federal Buildling..
Mliulcnnealis, Minn.: 213 Federal D~uildling.
New Orleans, La.: Room 225-A,~ Customnhouse.
New York, N. Y.: T784 Customhltouse.
N~orfolk, Va.: 406 East Plume Street.
Phlindelr~llpha, Pa.: 422 Commerciaf.l Tust rBuilding.
Portland, Oves'.: 215 Snv P~ost Office BuilIng~TII.
St. L~ouis, Mo.: 5110 Olive Street.
?ian Franciso, Calif.: 310 Customboulse.
Seattle, Wansh.: Su00 F'lerail Office Building.
Approved Code No. 347--Supplement No. 44
SUJPPLEM[ENTAR~Y COD)E, O~F ]FAIR COMPETITION
CEREAL MIACHINP~Elt'RY INDUSTRY
As Appro~vedl on Novemnber: 14, 1934
~APRrovIzwa SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE
CEREAL MACHINERY INDUSTRY
A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY
An application having been dully made pursuant to and in full
compliance with the provisions of Title I: of the National Industrial
Recovery A~ct, approved June 16, 1933, for approval of a Supple-
m~ental Code of Fair Competition for the Cereal Mlachiner~y Sub-
division of Machinery and Allied. Products Industry, and hearing
having been held there~on and the annexred report on said Supple-
mnental Code, containing findings with respect thereto, having been
made and directed to the President:
NOWT, TH.EIREFOIRE, on behalf of the Presidlent of the United
States, the National Industrial Recovery Board, pursuant to authnor-
ity vested in it byT Executive Orders of the President, including
Executive Order No. 6859, danted' September 27, 1934, and otherwise;
does hereby incorporate b~y reference said annexedr report and does
find that said Supplemental Code complies in all respects with the
pertinent provisions and will promote the policy and purposes of
said Title of said Act; and does hereby order that said Supplemental
Code of Fair Competition be and it is hereby approved, subject to
the following conditions:
(1) That the provisions of APrticle VTIII, Sections (al) and. (b),
insofar as they precscr~ibe a waiting period between the filing with
the C~ode Ahuthority (or such agency as may be des~iglnated in thne
Supplemental Code) and the effective date of price lists, as orig-
inally filed and/or rev\ised price lists or revised terms and conditions
of sale, be and they hereby are stayed pending further order; and
(2) That the provisions of Acrticle I~X, Section 4, be! and th~ey
hereby are stayred spending the submission of satisfactory evid~enes
concernmgf distribution of the products of thne Subdivision to the
National Industrial Recovery Board.
97356 *--1 325-55--34 1
(3) That the provisions of Article IXL, Section 5, be and they
hereby are stayed pending further order of the National Industrial
Recovery Board in order that the Code Authority may submiit a
Section determining trade-in allowances.
NATrow.1L INoosTR' RECO1TREY BoARD,
By W. A. H.\n~nrist.1x Adm;iflnisrtive O/}?cer.
Approval1 recommended :
IBARTON 7\. RIURRAY,
TVASHINGTON, D. C.,
No VemberVI 13, 1934.
REPORT TO THI[E: PRESIDENT
The W/hite Howie.
SmR: Thlis is a report on. the Supplem~ental Code of Fair Competi-
tion for the Cereal Machinery Subdivision of Machinery and Allied
Products Industry, a public hearing on which was held in Washing-
ton, D. C., on D~cemlber 8, 1933, and reconvened on December 21,
1933. The hlearinesr were conducted in full accordance with~ the
provisions of Title I~ of the National Industrial Recovery Act.
The Cer~eal Machinery Subdivision, being truly representative of
the manufacturers of the products defined mn Article II of the Sup-
p,~leentail Code, has elected to formulate and submit a Supplemental
Code of Fair Competition as provided for in the second paragraph
of Article I in the Code of Fair Competitipn for the ~Machinery
and Allied Products Industry, approved by y~ou on the sevenrteenth
day of March, 1934.
The Subdivision includes the engineering, designing, manufa~ctur-
ing, and/or importing and assembling for sale of machinery (includ-
ing spare, repair and replacement parts thereof) for reduction,
cleaninlg, roasting, drying, cooling, separating, mixing and flaking
as used in. the manufacture and processing of cereaels, seeds and nuts
and/or their by-products and includes supplies and/or equipment
directly incident thereto and also includes grinding and corrugat-
ing of mill rolls (excluding machinery and/or equipment for ex-
tracting vegetable oils, hammuer mills, machinery as sold for use on
farms, machinery and/or equipment or parts therefore having a
general application and use for purposes other than the uses herein-
abov~e enumerated) and includes all persons so engaged.
The Cereal 1Machinery Association has submitted in its code appli-
cation data showving the estimated values of aggrregate7t inves~tedl
capital, production~ capacity, and annual sales of machinery and
parts thereof used in the handling, storage, and processing of cereals,
seedst, and nuts for the years 1928 to 1933, inclusive. This assoc~in-
tion claims to represent 80 per cent of the entire industry meapsuredl
by dollar ~volume of business in 1932.
Data pertaining to employment, average hours of labor, and aver-
age erninlgs have been summarized from 36 National Recove~ry
Admi r~inistrtion qulestiollnnaire returns.
Annual sales of the products of this Subdivision declined from
$9.7100,000 in 1929 to $3,290,000 in 1932, or 66.1 per cent. The Sub-
division has estimated the vanlue of sales for 1933 at $2,'760,000 which
.ind'icates a further decline of 16.1 per cent as compared with the
previous pe~riod. Invested capital has declined 13.7 per cent since
19"9, while! estimated production capacity has increased 2.7 per cent.
The trade association in. its code applientiion ha~s estimated that thlis
Subdivision employed appr~oximately. 2,070 emlployees in 1929.A
tabrulationl of questionnaire returns from :36 establishments of t-he
Subd~civisiion shows that in 1929, 81.8 p~er cent of the total number of
emllployees were factory w-ork~ers. On the basis of this 81.8 p~er cent,
3"77 office wFork~ers have been segregalted fr~oml the 1929 figurer, leaving
.1,003 factory wror~kers.
No figures are available on the! full-time h~ours~ per week for thre
entire Subdcivision. AI sunuiinuizede tabuilationi of Nautional Recovery
Admliniste in tionI qulestionnair~es r~et urndct by the Subdivision shows
that in June, 11929, thie averag~e w~orking timle ranllged~ from 8 to 9 hours
p~er day and in June, 1933;, and October~1, 1033, 7 to 8 hours per day.
Th~e effect of the 40-hour provision wFcith production at more normllnl
levels may be f st imannted on a bas is of total man-hours1' per week in 1931
divided by the number of hours presccrib~e d inl the code.
After 1929 man-hours declined~ steadily from 86,000 to a mlininuanll
of 30,430 in 1932, or approximately 65 perl cent. Rlan-hours as of
October 15, 193:3. increa~sed to 4:3,64,~r) or 44 per cent over thne 1932
If it is assumed that; the 46,9901 man-h~our~s for 1L931 are representa-
tiv~e of the -volume of produ:llctionl for that year, and a reasonable.
measure of mnan-hour requllirement s in a more normal period, thre
adoption of the 40-hour weekr would require a force of ap~proximatelyy
1,1715 workers, or 69 per cet-nt, of the 1929 working level.
T1he probabilit~y that all factory3 worklers in the Subdivision will be
working to the limit of th~e maximumr 40-hour p~rovision is remote.
Conseqiuenltly the a~verag~e work week: is likely to be shorter, say 30
assumed effective hours, andl employment correspondingrly greater;
viz., 1,305 wocrkler~s will bet required to pro0duce the 19:31 volume.
Th'fe minimum wage prlovisions proposedl for the Subdivisions which
are operating~ under the Code of the Mar~~lchiner and Allied Produlcts
Industry are based on a flat mlinimuml~ hourly rante of 32 cents per hour
for the South and the following eity' p~putlation differentials for all
other sectionls of the Unitedl States:
Over 5j0,000 popullation_- __-_--__-- 40h cents per hour
Over 10,000 to 50,000 population--_--,,_ 38 cenzts per hour
10,000 population anld under__________ 36 cents per hour
In addition to the mliinimumn wange rates shownt above, the Code pro-
v~ides that women1~3 enlgagedC in Sub tfnltiallyl the sam~e work as mnen
shall receive the same rante of pay as iuc~h metn emp~loyees; that th~e
minimum wage~ for w~omlen employees engagedc~ in plalnt operations
shall be not less than 87.5 per cent of' the prloperl rate for the locality
in which emllployedl as specified; and~ th~t the minimllum in the Southl
shall bet nort less thanl 32 cenlts per hourlll.
T-otal testi:na~tedl weekly payrolls for the Subdc~i-visionl have been com-
pulted' by mnultipl-inlg the averag~ne weekly ~agfe! shown for workers in
the sample coveingr 30 e.tabllishmelnts; of: the Subdivision by the esti-
m~ntedl numbller of facltory w~rkters. The estima~tedl weekly payroll of
$41,766 for this ,Subdivision in 1929 declined to a minimuir m of $10,615
in the first qur~"ter of 11933, or 75 per cent. Payrolls amoulnting to
$i20,322, for the third quarter off 1933 indicate that payrolls for the
Su~d ivisi on have .increased aIbout 91 per cent since the first quarter
According to a summaryS of questionnaire rectur~ns from 36 estab-
lishments of the Subdivision, averagec weekly meanings decilinled from
$24.67 in 1929 to a Iinininuln of $113.54 in the first quarllter of 1933, or
45 per cent.
Weekly wages colrrect for thre coslt of li~vingr (National Rei~lcvery
Adm~inistration1 index) declined~c ft~rom $24.67 to a mninimnum of $19.48
in the first quarter of 1933. In the third quarter of 1933 these real "
wages had inc~reansed to $24.33.
Nulmber of Factory/ W~ork7er's R2eceiv~ing Minzimumll Wagels
Less than the
gardless of Loca-
Proposed for South or Cities Ranging from Minimum
50,000 population and over.................. ..................... 40 cents... .l 40. 8 361
10,000--~50,000 population........................... .......... 38 cents.___ 35. 3 312
Under 10,000 population...... ........ ......... .......... 36 cents ....l 29. 9 265
Southern minim um z--.......................... ............ 32 cents ....l 18. 6 165
Minimum hourly earnings of factory wage earners have been. re-
ported in questionnaire returns fromt 36 establishments of the Sub-
division for June 15, 1929, June 15, 1933, and October 15, 1933.
'The. lowest minimum wpage reported. for each of the three periods
by anly of these establishments ranged ILet weenl 15 cents and 20 cents
Based on the percentage of number of w\Nage earners receiving less
than thle designated rates, as shown above, and the fact that the
minimum wage paid as of October 15, 1933, ra~ngedl between 15 and
20 cents per hour, the adoption of the proposed minimum hourly
rates is expected to cause an increase in the payrolls of this Sub-
division basedl on the distribution as of June 15, 1933. The esti-
ma~ted7 ilc~renase will probably not exceed about 8.4 per cent, assuming~
only upward adjustment in the brackets belowv the 40-cent minimum.
ndsoat&d OF SUPPLEMENTAL CODE
Article I states the purposes of the Supplemental Code.
Article II accurately defines specific terms applicable to the Sub-
dlivisiont as usedl in this Sulpplemelntal Code.
AIrticle III provides for the adoption of the employment provi-
sions of t~he National Ind~str~ial 1Recovecryl Code of the M~achinery~ and
Allied~ Products Industry, as approved by you, and as from time to
Article IV provides for the adloption of A~rticles II, VI, VIII,
and IX of the Code of Fair Competition for the Machinery and
Allied Products Industry.
Artlele V provides for thle establishment of a Code Authority and
defines its powers and duties.
Article VI provides for an accounting system and methods of cost
finding and/or est~imatingr.
Article VII provides that no products of the Subdivision shall be
sold or offered for sale below a reasonable cost when thie Code
Authority determlines that, an emergency exists.
Article VIII pr~ovides for methods of setting up, revising and
filing price lists and discount sheets and terms of sale and payment.
Article IX sets forth trade practices for the Subdiivision.
Article X states that no provision of this Supplemental Code
relatingr to pricing and marketing, shall apply to Export sales as
d~efined by the term "' Export in this Artic~le.
Article XI pr1ovides that this Sup~plemelntnl Code and all the pro-
v-isions thereof are expressly made subject to thle right of the~ Pr~esi-
dent, in accordance with- Subsection (b) of Section 10 of the Act,
from, time to time to cancel or modify any ordt~er, applrovanl, license,
rule or regullation issuedl under said ALct. Prov0ision1 is also mad~Ce
that modi~ficantions may be submitted by the Code Auth~ority to thie
Aidminist rator for alpproval.
Article XII. No provision of this Supplemental Code shall be so
applied as to permit monopolies, or mon~opolistic practices, or to
ehinunate, oppress, or discriminate against small enterprises.
Article XIII states the effective da~te of this Supplemental Code.
TChe Assistalnt Deplt~y A~dministrator in his final report to us on
said Supplemental C'ode having found as herecin set forth and on the
basis of all the proceedings in this matter:
WVe find that:
(a) Said Supplemental Code is well designed to prlomote the
pollicies and purploses~ of Tlitle I of the NI~ational Industrilal Recovery
Act, including removanl of obstructions to thre free flow of interstate
and fol~reign commerce ~which tend to d~imlinishl thle amount thereof
and will provide for the general welfare by promoting the orga~ni-
zation of industry for the purpose of cooepeative action among the8
trade groups, by inducing and mlaintainingr unitedl action of labor and
management ln de I 71rlI adeute governmnen tal sa nc t ions and sup Ier.i si on,
by eliminating unfair competitive practices, by promotingg thbe fullest
possible utilizationl of' the present poutv naiyo nutis
by aoidng ndu retritio production (except as many be
temporarily requilred), by increasing the can umrp tioln of indtustrial
and agi curltura Il'l products throughhc incr~easing puxrch~asing powner,b
r~redcing and relieviing unemployment, by imipr~ovingr standards o
labor, and by othlerivie rehtlabilitating: industry.
(b) Said Suibdiv~isio normally employs. 2 not more than 50,000
emiployees; anld is nlot c~lassified byT us as a major industry.
(c) The Suppllemellntal Code as approvedcr comnplies in. all respects
with the pertinent p~rovisions of said Title of said A~ct, includling
without limitation Subseetion (a) of Sect ionl 3, Subsecton (a) of
Section 7, andl Subsection (b) of Section 10 thiereof; and~ that the
app~liennt as~sciation is an industrial assnc~iation truly r~eprlesentative
of the aforesll.1n Sulbllivisic: n; and that said association imposes no
inlequitab~ll restrictions on admission to membellr:hipi l therecin.
(d) TPhe Supplementat~l Code is not desligned to and will not permit
monopolies or monopolistic _practices.
(e) The Supplemnental Code is not do signed to and will not
eliminated~ or oppress small enterpr~ise- s andi will not operate to dlis-
crimimate agamtist them.
(f) Those engaged~ in other steps~ of the economic pr'cess~~ havet not
been deprivedcr of the right to be heard prior to approval of saidt
Supplemntatr l Code.
For these reasons, therefore, we have approvedi this Supplemental
Code, provided~l that certain provisions Irelating to price pulblirention
in ~Article VIII, the provisions of Article IXI, Section 4, and the
pro\isiorns of Article IX, Section 5i, are stayed as stated in the Or~der.
For the National Indiustrial Recovery Board:
W. A. HARRIMAN,
NOVEal:EI: 14, 1934.
973560 1325--55- 3~-?4 2
SUIPPLEMIENTARYZ CODE O1F FA~QIR COMPETITION FOR
T'HE: CEREAL MACHIINEIR~Y INDUSTRY
A DIVISION OF THE MA~CHINERY ABND ALLIED PRODUCTS INDUSTRY
To effectuate the policy of T~itle I[ of the NSat~ional Industrial
Recovery Alct, the following provrisions are establishedc as a Supple-
nu-.ntal Code of Fair Compettition for the Cer~eal MachineryT Subdivi-
sion f th Macineryand llie Products Indlustry, and together
with the Code of Fair Competition for the Malc~hinery and A~llied
Products Industry, shall be the standard of fair competition for this
Subdivision, and shall be binding on every employer therein.
ARTICLE II DEFINITIONS
(a) "Applicant means the Cereal Manch~iner~y Association, a trade
organization, all mnemlbers of which are engaged in the manufactulre
for sale of thne products of the Cereal Mlachlinery Subdlivisionl of the
Machinery and Allied Products Industry.
(b) Industry "/' means the Ma~chineryadAle Pout n
dustry, as defined in its Code of 1Fair Compeition aapproedut byn
the Presidenrlt on Miarch 17, 1934, and as such de~finitio~n may from
timne to time be amended.
(c) Subdivision means thte Cereal M~achinery Subdivision of-
the Manchinery and Allied Products Industry as defined and set fort
in paragraph'l five (5) Article II of the Code of F'air Competition
for thne Mac~lhinery and Allied Products IndcustryS as followvss:
(d) Cereal! MachinIery ,Subdlivision as used helrein, is defined to
mea~n the engineering, designing, manufactur~ing, and_/or importing
and assemblllinlg for sale of machinery (inc~lud~ing spare, r~epair anld
repinceemnt~ parts thereof) for reduction, cleaning, ro~casting,! drySing,
cooling, separanting, mixing and flaking as usedt~t in the masnulfactu re
and prcesst~ingr of cereals, seeds and nuts and/or their by-prodlucts
and includes supplies and/or equipmenlltt dirtc~tly incident thiereto andil
nl~so includes grinding and corrupntingS of mill rolls (excludring ma-
chinery and/or equipmlentt for extracting vegetab~le oils, hammer
mlills, machinery as sold jfor use on farmsl~, machinery and/or equip-
ment or parts therefore hav\ing a general'l app~licartion and us~e for
purp'oise other th'an thle uses her1einabove-t enumerated)~tl and inlcluldes
(e) Code I" means the Code of Fiair Comupetition for the Mfa-
(hi ncery an Altlliedl Products I~nd ust ry, as approved byv thle Presidelnt,
Marllch 17, 1!143, and as fromll time to time amndledlr .
(f)~ "'Plira ") nwansll' a nalturlal p~erson, a par1~tnership~, a corpora-
tio.n, an neercintio~n. a tr~ust, a tru~ste~e, a trustee in, bankruptcy, a
r~ec~eiverl or other entity~.
(g) ~"Emloyer means any person engaged in this Subdivision
either on, his own behalf? or ars an emp-loy~er of labor.
(h) '" Employee,- "' means anly one whlo is employed in, the Subdivi-
so (i) The A8ct means Title I of the Nationni Ind'ustr~ial Recovery
(j) The Pirisiden/t" eans the Presidenlt of the United States.
()" Board means the N;ational Industrial Recovery Board or
its successor in o~ffice.
(1) "Basic Code Auth~or~ity mens~l the Code Authority for the
Machinery and Allied Products TIndustry3 as constitutedl by thne Code.
(m) "' Cod~e Au~thority "' means the Code Authority constituted for
this Subdivision, as provided by the Code and by this Supp~lemental
(n) Group Code A1t7uthorit mecans the Code Authority for any
group or product classification within this Subdivision.
(0) Puiblish '" means to make available to the public.
AnTIC'LE III-EMIPLOYMENT Pnov\Is:I(.Ns
Thre following Articles of the Code, viz : Article III, Working
Hours "; A~rticle IV, Wages "; and Article V, General Labor
Provisions are hereby made a part of this Supplemental Code,
with the same effect as if they were written into this Sup~plemental
ARTICLE IVT--ADOPTION or OTHER ]PROVISIONS OF CODE
TChe following Airtiles of the Code, viz: Article II, Definitions ";
Article VI, "CAdministration ", to the extent that they shall be ap-
plicable to this Supplemental Code as such or as it mlay hereafter be
administered as an. autonomous Code; Article VIIII, Miodifications
and Termination "; and Article IX, Withdrawal "; are hereby
made a part of this Supplemental Code, with the same effect as if
they were writtten into this Supplemlental Code.
ARTICLE V--ADMINISI; TRA TIONc
(a) Al Code Authority for this Subdiviision is hereby conlstitutedl
to ad~minister, supervise and facilitate th~e enTforlcemen~lt of the Code
and of this Supplemental Code in the manner and to the extelt pro-
vided in, thne Code and in this Suplplemental Code.
(b) D~uring the period not to exceed isity (0 daysl following o the
effective date of this Supplemental Code,thcoeomieeote
A~pplicanlt shall c~onstitu~te a templlorary Code Atluthority. The
Board, in its discretion, mlay appoint one addltitiolnal rrlnember (with-
out vote and without expense to this Subdivision).
(c) This Subd!ivision, hav\inlg held an el~c~tionI for pc~rmanent~ilt Code
Authority under the prov.iisionl s of the Code of Fair Compel~cttiton for
the Mrachi~nerys and Allied Products Industry, the Code Aulthlority so
elected shall constitute the ~first pecrmanenlclt Code Atluthority for this
Subdivision if this method of election mee~cts with the approval'l\ of thze
Board. If this method of election does not meet wvith~ the approval
of the Board then the provisions here~ina~fter provided shall apply
for the. election of the first permannent Code Authority. For elections
after the ~first, thre p~rovisions~ of this Code for election of a permannent
Code AuthorC~lity' Rshll apply.
(d) Th~e Applicant shall, by at least twecnty (2)days written
notic~e. ma1;ild to all emplloyer~s whose name A5ppl icant has learned
a~fter' renso~naby lyili tent sear11ch, call a meetings femlyestob
held within sixty ((00~) dlay~ after the effective <1ste for ~the purpose
of adopting pr!o:cedural rulecs and regrulations for the election, orgumi-
zation and opera1tio-n of thne peramaent Code Authlorityr and7 electing
a permanent Code Authority~ which shall consist of noi, less than five~
(5) nor more than. nine (9) members. The Board may, in its discre-
tion, appoint one ad~itio.nal Imember (without vote and without ex-
pense to thet Industry). Thc pel~rmanecnt Cod'e ~Authority so elected'
and appo'intedl shall sup~erseealec the tempolrar Iy Codeft Authority.
(e) It beings found nec~e-ssry in order to sup~or~t the Admninistran-
tion of this Supplelmental Code anld to maintain the standlardcs of
Fair Competition estalblishedl hereundercl and to effectuate the policy
of the Act, the Code Authority is authorized:
(1) T'o incur suchl reasonable obligationls as are necessary
and proper for the foregoing purposes, and to meett such obli-
gations out of funds which may be raised as hereinnfter pro-
vidled- and which shall be held in trust for the purpose of the
(2) T'o submit to the Board for its approval, subject to suchl
notice and opportunity to be heard as it m~ay deem~ necessary
(1) an itemized budget of its estimated expenses for the fore-
gomgi purposes, and (2) an equitable basis upon which the
fudsnec~essary to support such budget shall be conltributedl
by employers orf the Subdivision.;
(3) )A~ft such budget and basis of contribution have been
approved by the Board, to determine and obtain. equitable
contribution as above set forth. by- all employers of the Subdci-
vision, and to thaft end, if necessary, to institute legal proceedc-
ings therefore in. its own name.
(f) ]Each employer of the Subd'ivision shall pay his or its equitable
contribution to the exspen esc of the maintenancer of the Code Author-
ity, determninedt as hereinabove providedc~, and subject to rules and
regulations pertaining thereto issued by the Board. Only employers
of the Subdi~vision comnplying with the Supplemental Co~de and con-
tributing to the expecnses of its adtcminis;traioni as hcr~einb~ov-e pro-
vided, ~unless duly exempnited~ from making such co-ntr~ibutions, shall
be entitled to par~ticipante in the sel~c~tion~ of' members of the Code
Authority or to receive the becnefits of any of its voluntaryv activities
or to maklle use of any emblem or insignia of the National Recovery)
(g) The Code Author~ity shall neither inlcur nor pay any obligartion
usr~t a nt ially in excess of the am~unlt, thereof as estima~ted init p
proved budget, and shall in no evecnt exceed the total amlou~nt con-
tained inl the applrovedc hlu<1get, xcelpt upon app~lrovaul of the Boarld;
and no s:ubse;;rquent budlget shall co~ntainl any deficiency item for ex-
pendit~ures mn excess olf prior budget e timlat s ecscep~t those whlichl the
Board shall hlave so appovd
(h) Action by empl oyers in any Subdlivisionl meetingr for the erlec-
tion of Code Authority shall be b~y vote of the~ emlployers entitledl to
vote as provided in Sections (e), (f), (g) of thlis Article 'V, and who
are present in p~ersonl or by proxry, or who have voted by mail ballot,
each such employer to have one vote only. Action by em-ployerls in
any Subdivision meeting for the adoption of procedural rules, revi-
sions or adlditions to the Supplemental Code, or the transuertio~n of
other business of the Subdt~ivisio~n under this Supplemental Crode,
shanll be by vote of the employers in the Subdivision who are enltit ledr
to vote threat as prlovide~d in Sections~ (e), (f ), (gS) Ar'ticlei V of the
Supplemental Codel and are p~reset,~l in ~personJ or by proxy, or who
have voted by mail ballot, dulyr executed and filed with Code A~u-
t~hority; cast and computed in the mannner provided in Section (dX)
Article VI of the Code. All questions as to the number of votes
which each employer shall be ent-itledc to easti at any mleetingr of thle
emp'loycrs other than the meeting~ held to vote for the election of tlhe
permanent Code Authorit~y shall be determined by Cod~e Authtority,
in accordance with Section (d) Article V7I of the Code.
(i) Employers in this Subdivision having a common interest and
collnunn problems may be grocup:ed by Code Authority for adminis-
t ra ti ve.il Ipurses. There shall be a Group Code Authority approved
or appointed by Code Authority for each such group.
(j) I~f formal complaint is made to Code Authority that provi-
sions of this Supplemental C~ode have been violated by any employer',
Code Authlority or the proper Group Code Authority may to the ex-
tent permitted by the Act, cause such investigation or audit to be
made, as may be deemed necessary. If such investigation is made
by Group Code Author~ity it shall report the result of such inv\estiga-
tion or audit to Code Authority for action.
(k) The Code Authority may appoint a Trade Practice Commit-
tee which shall meet with the Trade Practice Committees appointed
under such~ other Codes as may be related to the Subdivision, for the
~purpe of formnulating fair trade practices to govern thle relatiorn-
shps b~etwenc~l production and distribution empI.loyers under this Sup>-
plemental Code and under such others to the extent that such fair
trade practices malny be proposed to the Board as amendmlents to this
Supp'lemellntl Code and such other Codes.
Anr(-r.e VI ACCOUN~TINGt AND COSTING
Thle Code Authority may cause to be formula;tced an accounting
systemn and methocds olf cost findlingr and/or estima~tingcpal o s
;by all empllloyerIs of the Subdivsin.Afer such s~ystemn and methods
havpe been formulllated~, full details cnc-lcelrningL~ them shall be mladte
available to all emplloyer~s. Thereafter all emlployvers sha~ll determine
and/or es~timalte: costs in necordl~anc.e with the principles of such
ARTIICL~E VII--SIELLINGTC BELOW REASONAcBLE COST
SECT.ION 1. lN1en the Code Authlority dertermines thant an emerg-
gencyy exists in this Subdivision and that the cause theefllcf is de-
structive price-cuttingi sulCh as to renderl~l ineffect(ive or seriously en-
danger the maintenance of the prtoviions.- of this Supplemental Cclde
the Code Authority may13 onus1e to be determined the low-est reasnacnble
'cost of the products of this Sub~division, such determination to be
subject to such notice and hearings as the Board may require. The
nonrd may approve, disapprovec, or modify the determination.
The~enfter, during the periodl of the emergency! it shall be an unfair
trade practice for any~ employer of the Subdivirsion to sell or otfer to
sell any product of thle Subdiviision for which the low-est reasonable
cost ha:s been determined at suchl prices or uponi such terms or con-
ditions of sale tha~t thle buyer w~ill pay less thierefor~e thian the lowest
reasonable cost of such prlodlucts.
Wh'len it appears that conditions have chan~edl, the Code Author-
ity, upon its own initiativ-e or upon the reqlues;t of any interested
partyT, shall cause the determlination to be r~eviewedl.
SEcTIoN 2. The foregoingr Section (1) shall not. apply to (a)
dropped lines, or (b) seconds, or (c) inventor~ies which muist be con-
rertedl into cash to meet emergency~ needs, all of which may be
dlisp'osed of by any employer, at anly price anld on anry terms or con-
ditions,, but onlyS if such employer, not less than twoc wreeks before
such proposeed disposal, has filled with Code A~uthorityr a statement
in writing setting forthn thle facts of, and1c reasons for, suIch proposed
dlisposal and the price antd terms and conditions of sale. Notice
of such disposal shall be sent immnediately to all employers manu-
facturing products of equivalent designl, character, qlualit~y or speci-
fic~ations, who may sell sulch products at prices andl on terms and
conditions as favcora~ble as those stipu~lated in the proposed disposal,
when meetings the competition of such proposed disposal.
SECTIO)N 3. The foregoing Section (1) shall not, apply to a saller
mlarle in order to meet. competition on products manufactured out-
sidee the United States. For such disposal, any' employer mayz sell
at price;; and on terms and conditions as favorable as those o~f the
comlpetingf foreign product, but only if he has first reported to thre
Code Authority his intentio-n so to sell, and the facts as to the com-
pe'tition which justifies such action.
ArrI CLE I[II I-PRICE LIsTrs
(a) If and wrhen Code Aulthority determines that in any group
of thie Su~bdlivision it has been the generally~ recognizedl practice
to sell a cpecifiedl product on, the basis of net price lists, or price
lists with discount sheets, and terms of sale and payment, each em-
player engaged in the malnufn~turlle and/or importing of sulch p~rod-
nect shanll, w\ithlin tenl (10) dayvs after notice of such determination,
file with Codle Authority a net price list, or a, price list withl dis-
coun~t sheet, as the case may be, individually prep~aredi by him,
Shlowing his current prices, or prices andl discounts, andc terms of sale
and paymer~nt, for such specifiedl product, and Coder Authority shall
immelcdiately p~ublishl and send copies thereof to all known employers
who are cooperating undler this Supplemental Code as described
in Article V7 (e), (f), (g;) and engaged~ in the manufacture and/or
impotingof such specified product.
Revised price lists and~/or discount sheets undi/or terms of sale
andl payments may be filedl fromt timie to timie thereafter with the
2 See paragraph 2 (1) of order approving this Code.
Code Authority by any such employer, to become operative upon
the date specified therein, but such revised price lists and/or dis-
count sheets and/or terms of sale and payment shall be filed with
the Code Authority ten (10) days in advance of the operative
date. Copies thereof, with notice of the operative date specified,
shall be immediately p~ublishled and sent to all empllloyers cooperal~tin g
undercl this Supplemental Code as described in. Article V (e), (f),
(g), any of whomn may file, if hne so desires~, revisions of h~is price
lists and/or discount sh~eets and/or terms of sale and payment,
which shall become effective upon the date whe~n the revi edl- price
list and/or discount sheets and/or terms of sale and. payment first
filed shall go into effect.
(b) If and when Code Aiuthorityr shall determinile that in any
group of the Subdivision not now selling its product on the basis
of price lists, with or without discounlt sheet<,L~ and terms of sale
and payment, the distribution or ma~rk~etinlg conditions in thie group
are tesame as, or similar to, the distributions or matrkleting con-
dit.ions in a group where the use of price lists, with or without dis-
count sheets and terms of sale and payment is wFell recognized, and
that a system~ of selling on net price lists or price lists with disclounlt
sheets and terms of sale and payment for such specified product
should be put into effect in such group, then each employer in such
group shall within twrenty (20) days after notice of such determinat-
tion,, file with Code Authority net price lists or price lists with
discount sheets, and terms of sale and payment, showing his 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 revised in the manner hereinbefore provided. Provided
that Code Authority shall make no determ-ination to place any prod-
uct of the Subdivision (not now on a price list basis) on a price
list basis, as providedl in this Section unless affirmative consent to
suc deermnaton s gvenbya two-thirds (2/s~) vote of employeStJ
wuho areat thatio t sim en cooperatin under this Supplemental Code as
desc:r~ib~ed in Article VT (e), (f), (g), and are eng~gredt in manu-
fac~turing and/or imuporting of such product. The eligibility re-
quirements, method, and effect of ;such1 voting shall be thle same as is
provided byT Airticle VC.
(c) If and when Code Authority, wniith. the affinnal~tive~ cocnsenlt
given by a two-thirds (2/3) vote of the eimployers who are at thnat
time cooperating under the Supplementn1t~ Code as described in Ar-
ticle V, shall determin~i le thlat it is undesirable to conl~tinule the filing
of net price lists and/or price lists w]ith discount sheets and/or
terms of sale and payment on any product in r~espec~t of which such
filing has ther~etofore been r~equil~red, such filing shall cease and the
provisions of this Article shall not apply to such product unless and
until Code Aluthority shall againl deter~minet that such ~filing be made.
(d) No employer shall sell directly or indirectly, by anly means
wihatsoever, any product of the Subdivision covered by provisions
of this Article YVIII at a, different price, or on more favorable terms
of sale a~nd paymlenlt, than those provided in his ownl current net
price lists, or price lists and d'iscoulnt sheets, and terms of sale anld
a"ymlent except as provided in Article VII.
ARIrrCLE IX-TRADE PRACTICES
Eachi of th~e following acts and practices is deemed to be inimical
to the best interests of the Subdivision, and of the public, and each is,
therefore, thereby declared t~o be, andi to constitute, an unfair method
of competition, and is pr~ohibit~ed, viz;:
1. No employer shall secretly offers or mak~e any payment or allow-
ance of a rebate, refund, commission, credit, unearned discount or
excess allowance, whether inl the formi of money or otherwise, nor
shall an emp~loyer of the Subdivision secretly offers or extend to any
customer any special sernce or privilege not extended t~o all cus-
tomers of the same class, for the purpose of influencinga a sale.
2. No employer shall give, permit to be given or offer to give,
anything of value for the pulrprose of influencing or rewardinga the
action of any employee, agent, or r~epresentative of another in rela-
tion to the business of the employer of slc~h employee, the principal
of such agent or the r~ep~resented party, without the krnow~ledgie of
such emnplo~er, principal or par~ty. This p~rovision shall not be con-
strued to proh~i bit free and grener~al distribution of articles commonly
used for advertisingr except so far as such articles are actually used
for commercial bribery as hereinabove defined.
3. No employer shall publish adv~ertisingr (whether printeed, radio,
dlisplay or of any other nature), which is misleading or inaccurate
in any material particular, nor shall anly emlployer in any way mis-
represent any goods (including but-without Ilimitation its use, trade-
matrk, gradeh, quality, qulantt it, origin, size, substance, character,
natrefinshmatria, on~tecnt or preparations) or credit terms,
values, policies, services, or the naturee or form o~f the business
4. No employer shall evade the provisions of this Codle byg selling
to or through. anly distributor wclho does not agree to comply with
Articles VII[1I and IX of this Code.2
5. No employer shall take used equipment in trade on the pur-
chase price of newn equipment nor make allowanices or grant credit,
directly or indirectly, for ulsedl equipmnenlt; provided, however, that
in any subdivision for wh-ich there mnay be a Sub-Code Auth~ority
approved or appo-inltedl by the Code Aut~hor~ity in accordance with
thte provisions of Section (i) A~rticle V hereof, the employers who
are members of such subdcivision may take such used machinery
or equipment in trade on the purchase price of new machinery~ or
equipment in necordannce within a standard mnethiod of appraisal
appr'~oved by such grloup) Code. Authlorit~y."
6. A uniform standlard of practice c~overing "sales of products
whe inludng nstllaion "may be established by any group in
the indulstry, pro~vidred that such standard of praRctice shall receive
the affirmative vote of at lest two-thlirdsj of the employers in such
group and shall be approved by the Code Authlority and thle Boardl.
When such a standard of practice shall havl\e been so established by
a group and so apprllovedf no em>loyer in thnat group shall contract
wlith pur'chasers~ for the furn~ishing~r andr installing of equipment de-
signed, manu~fact ured, assembllled or offered~ for sale~ by sulch em-
*See paragraplhs 2 (2) of order approv\ing this Code.
*Bee paragraph 2 (3) of order alpproving- this Code,
players, except~ in accordance with such stancanetls, provided, how-
ever, that in connection with contracts with State or~F~edieratl Agen-
cies such forms mnay be used as the State or Fiederal Agencie~s may
AstralIc rt X-SALEs won1 ExpSi'l:
The pro-visions of this Supp~lemnlrtall Code cocelrn~~ingg pricing and
mark~letinlg shall not apply to direct export sales of any product or
to sales of any product destined ulltilnately for export. The term
"L ex7rport shall include all shipments to all places without thle sev-
eral Sta~tes of the Ujnited States and the District of Columlbia; pro-
vided, hlow~\evr, that no shipment to any territory or po~c.cei~~on of the
United States shall be considered an export wrhen. any employer
is engaged in, the Subdivision. in such territory or possession.
(a) This Supplemental Code and all the provisions thereotc.f are
expr,'essly madn~e subject to the right of the President, in accordance
with the provisions of subsection (b) of Section 10 of the Act, from
time to time to cancel or mnodif~y any order, approval, license, rule,
or regulation. issued under Title I of said Act.
(b) Any amendmclents, additions, revisions, or supplements of this
Supp'lemlental Code, proposed by Code Authority, and authorized
by the affirmative vote of two-thirds (2/3) of the employers shall be
in full force and effect upon approval by t~he Admlinist1~tratr. The
eligibility requirements, method and effect of such voting shall be
the sa le. as provided by Article V hereof.
ARTICLE XII -MONOPOLIES
No provision of this Surpplemental Code shall be so applied as to
permit monopolies or mno~nopolistic practices, or to teilliminate, op-
press, or discl~riminate against small enterprises.
AltTCLE IIIEFFECTIVE DATE:
This Supplemental Code shall become effective and binding on all
persons enga~ged in th~e Subdivision on the eleventh (11th) day after
its a~pproval by the President.
Approved Codie No. 347--Supple'ment No. 44.
Registry No. 1399--56.