Supplementary code of fair competition for the envelope machine manufacturing industry (a division of the machinery and ...

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Material Information

Title:
Supplementary code of fair competition for the envelope machine manufacturing industry (a division of the machinery and allied products industry) as approved on July 20, 1934
Portion of title:
Envelope machine manufacturing industry
Physical Description:
12 p. : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Paper products industry -- United States   ( lcsh )
Envelopes (Stationery)   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

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. 1399-57."
General Note:
"Approved Code No. 347--Supplement No. 31."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004940640
oclc - 654787132
System ID:
AA00006769:00001

Full Text







































UNIV. OF FL IBC.






UNITED STATES
GOVERNMENT PRINTING OFFICE
WALSHINGTON: 1934


Wa r sl by the Shiparlnendent of Docurments, Waeblugron, D.C. Price 5 centa


Approved Code No. 347--Supplement No. 31


Registry No. 13399-57


NATIONAL RECOVERY ADMINISTRATION



SUPPLEMENTARY
CODE OF FAIR COMPETITION
FOR THE

ENVELOPE MACHINE

MANUFACTURING INDUSTRY

(A Division of the Machinery and Allied Products Industry)

AS APPROVED ON JULY 20, 1934


Wr DO OUR PARf






















This publication is for sale by the Superintendent of Documents, Government
Printing Office, W7Cashington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF 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 Commzerce.
Dallas, T'ex.: Chamber of Commerce Building.
Detroit, M/3ich.: 801 First National Bank Building.
Hloustonl, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
K~ansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minlneapolis, Minn.: 213 F'ederal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customahouse.
N\orfolk, Va.: 406 East Plume Street.
Philadelphia, 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. 311


SUPPLEMENTARY CODE OF FAQJIR COMPETITION
FOR THE;

ENVELOPE MACHINE MANUFACTURING
INDUSTRY

As Approved on July' 20, 19341


ORDER

Arrnovihsa SUPPLEM\ENTARY COIDE OF FAIR COMPETTITON FOR THEl
ENVELOPE nlACHIN~E AfANUJFSCTURNG INDUSTRY

A DITSION OF THIE MUACHINIERY AND) ALLE PRODUCTS INJDUSTR

An application having been duly made pursuant to and in full
compliance with the provisions of Tit~le I of the National Industrial
Recoveryr Act, approved June 16, 1933, for approval of a Supple-
mental C'ode of F'air Competition for thie Envelope 1\lachine hlanu-
facturingr Subdivision of 10achinery and Allied Products Industry,
and hearings having been duly held thereon and the annexed report
on said Supplemental Code containing findings wcith respect thereto,
having been made and directed to the President:
NOWt~, THEREFORE, on behalf of the President of thre United
States, I, Hugah S. Johnson, Administrator for Inrdustial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30),
1933, and otherwise; do hereby incorporate by reference said an-
nexed report and do find that said Supplemental Code complies in
all respects with the pertinent provisions and w~ill promot th~e policy
and purposes of said Title of said Act; and do herebyq order that
said Supplemental Code of Fair Competition be and it is hereb~y
approved subject to the condition that, thle provisions of A~rticle IX,
Section (1) be and they hereby are stayed, pending the submission
of satisfactory evidence concerning distribution of the products ofe
the Subdivision to the Aldminis~trator.
IITUH S. Jons~soN,
Ad m inistr~ator for Industr~ial R4covery.
Approval recommended :
Baur~os W\. MII~~Ana,
Divlisionz Admi~inistrator.
WASHINGTON, n.c.,
July ,"0, 1934.
75246*-8--20-113:----34 1













REPORTS TO THE PRESIDENT


The PRESIDENT,
The White House.
SmR: This is a report on the Supplemental Code of Fair Competi-
tion for the Envelope Mlachine M/anufacturing Subdi~vision of the
Mlachninery and Allied Products Industry, public hearing having
been conducted thereon in WCas~hington, D.C., December 21, 1933, in
accordance with the provisions of Title I of thne N~ational Industrial
Recovery Act. Every person who filed a request for an appearance
was freely heard in public and all statutory and regulatory require-
ments were complied with.

GENERAL STATEMENT
The 1Envelope Machine Manufacturers Association, being truly
representative of this Subdivision of the Machinery and AlliedZ
Products Industry, has elected to avail itself of the option of sub-
mitting a Supplemental Code of Fair Comapetition, as provided in
Article I of the Basic Code for the 1Machinery and Allied Products
Industry approved by you on the seventeenth day of March, 1934.
This Subdivision represents a part of the capital goods industry,
manufacturing and selling machinery and/or parts thereof for use
in the manufacture anmd/or production of envelopes of all kinds.
ECONOMIC] EFFECT

Employment in this Subdivision of the Industry, in 1929, of
approximately 250 wage earners, declined to approximately 1_21 ra~ge
earners in 1933, or 52 per cent. Annual sales of this Subdivision of
the Industry declined 60%/ from 1929 to 1932. T'he Subdivision
anticipated a possible further decline in 1933 sales.
Thle average work week in October 1933 waTs 45.3 hours; wlith pro-
duction. remaining at present levels, an increase of approximately
13 per cent in employment may be expected with. the adoption of the
40-hour week.
The minimum hourly rates in the approved Basic Code consist of
one differential for the South and three city population differentials
for all other sections of the United States as follows: Over 50,000
population, 40 cents per hour; 10,000-50,000 population, 38 cents per
hour; 10,000 population and under, 36 cents per hour; South, 32
cents per hour.
In addition to the minimum wage rates shown above, the Basic
Code provides that women engaged in substantially the same work as
men shall receive the same rate of pay as such men employees; that
the minimum wPage for women employees engaged in plant operations
(2)








shall be not less than 87.5 percent of the, proper rate for the locatlityg
in whlich employed~ as specified; and that the mninimnumi in "he South
shall be not less than 32 cents per hour.
A distribution showing the number of factory w-or~ke~s receiving
classified hourily rates is not avanilab!e, consequently, th~e number of
factory workers receiving less than thle specifiedl minimuiim rates
provided in the Bansic Codet cannot be estimated, nror the effect wh`tich
the minimum rates will hlave on the pay rolls of this Subdlivision of
the Industry.
nisoni~ OF THE SUPPLEMLENTAL CODE
Article I states the purpose of the Supplemental Code.
Article II accurately defines specific terms emlployed in thiis Sup-
plemental Code.
Article III. The labor provisions of th~e Basic Code for the Man-
chinery and Allied Products Industry, as approved Mlarch 17, 19341,
are incorporated by reference as t.he Ilabor provisions of this Supple-
mental Code.
Article IV adopts the relevant portions of Ar~cticle VI "Adminis-
tration ", and Article VIII, "' Modifications and Termination "", of
the Basic Code for the Mlachinery anid Allied Products Industry, as
approved Mlarch 17, 1934.
Article V establishes a- code authority connsising of three memi-
bers. The Administrator may, in his discretion, appoint one addi-
tional member, wTithout vote and without expense to fthe Subdlivision.
Together with the applicable provisions of the Basic Code, mecha-
nism is provided for thle admiinistration of this Supplemental Code.
Article V'I provides for an accounting system and methods of cost
finding and/'or estimating.
Article VII provides that during an emergency, the lowest reason-
able cost of products of the Sulbdivisionn may be determined, and that
during said emergency, it shall be an unfair trad~e practice to sell at
less than thle determined reasonable cost.
Article VIII sets forth the trade practices which have been espe-
cially designed to offset unfair competition in this Subdivision.
Article IXY provides for the filing with the Code Auth~ority, by
employers in this Subdivision, of their discount periods and terms
of sale, as well as for the filing of any modifications thereto.
Article X defines export territory and provides that filed discount
periods and terms of sale are not applicable to export shi pments.
Article XI contains the mandatory provisions contained in Section
10 (b) of the Act, and also provides for the submission of proposed
amendments to the Supplemental Code. This AIrticle also states that
this Supplemental Code shall terminate June 16, 1935.
Article XII provides for the withdrawal of this Subdlivision from
the jurisdiction of the Basic Code Authority andi for the continued
functioning of this Subdivision as an individual industry under its
own Code.
Article XIII stipulates that there shall be no inequitable restrio-
tions and provides against monopolies.
Article fI V gives the effective date of this Supplemental Code.








FINDINGS
The Deputy Adml 1~ini- ct ent(?r in, his final report to me on said Sup-
plemental Code having found as herein set forth and on. the basis of
all the proc~eedcinlgs in this matter:
I find that:
(a) Said Supple~mental Code is wRell designed to p~romote the
policies and purposes of Title I of the National Industrial Recov~erly
Act, including removal of obstrucitionls to the free flow of interstate
and foreign conuneri~tce! which tend to diminish the amount thereof,
and will provide for thle genrallr' welfare by promoting the organiza-
tion of industry for the purpose of cooperative action among the
trade groups, by inducing and maintaining united action of laborol
and ml~n~anaemen under adequate govep~ll~r~nmen salrl;ncins and super-c
vision, by eliminating unfair competitive practices, by promoting the
fullest possible utilization. of the present productive capacity of
industries, by avoiding undue restriction of production (except as
may be temporarily required), by increasing the consumption of
industrial and agricultural products through increasing purchasing
power, by reducing and relieving unemployment, by improving
standards of labor, and by otherwise rehabilitating industry.
(b) Said Subdivision. normally employs not more than 50,000
employees; and is not classifiedl by 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 (a.) 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 the aforesaid Subdivision; and that said association imposes no
inequitable restrictions on admission to membership therein.
(d) The Supplemental Code is not designed to and will not permit
monopolies or monopolistic practices.
(e?) The Supplemental Code is not designed to and will not elim-
inate or oppress small enterprises and will not operate to discrim-
inate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said
Supplemental Code.
For these reasons, therefore, I have approved this Supplemnental
Code, on the condition that the provisions of Section 1, Article I[X
be stayed, as stated in, the Order.
uRespectfully,
HU[GI S. JOH[NSON
AdmzinisEtrtor.
JULY 20, 1934.











SUPPLEMlENTARY CODE OF FAIR COMPETITION FEOR
TrHE ENVELOPE MA~~CHINE \AN;UFACTURZI ~G; IN'DUjSTrRY
A DIVISION OF THE MACHINERY AN'D ALLIED P'RODUCTS INDUSTRY

AnnamL I--PERPOSES
To effectuate the policy of Title I of the NationaLnndust~rial Re-
covery Act, the following provisions are established as a, Supple-
mental Code for the Envelope 10achine Ma~nufacturing Subdivislonn
of the MSachinery and Applied Products Industry, and together with
the Code of Fair Competition of Afachlinery and Allied Products
Industry, shall be the standard of fair competition for this Sub
division, and shall be binding on every employer therein.
ARTICII II--DrzzmnI1O1s

"Appplcant means the Envelope Miachine Mianufacturers Asso-
ciation, a trade organization, all members of which are engaged in
the manufacture for sale of the products of the Envelope M~achine
Manufacturing Subdivision of thle Miachinery and Allied Products
Industry.
Industry means the nlfachinery and Allied Productsb IndustrS,
as defined in its Code of Fair Competition as approved by the Presl-
dent, and as such definition may from timne to time be amended.
"' Subdivision means this Envelope 1\lachine M~anufacturing Sub-
division of the M~achinery and Allied Products Indulstry as defined
and set forth in Paragraph 11 of Article II of the Code of Fair
Competition of the M~achinery and Allied Products Industry as
follows :
"' Envelope Miachine Mianufacturing Subdivision means the man~u-
facture for sale of machinery and/or parts thereof for use ini the
manufacture and:/or production of envelopes of all kinds, including
the erecting, designing, servicing, maintenance, anld repair of such
machinery and/,or parts thereof, and includes all those engaged inr
such manufacture for sale."
The foregoing definition shall not permiit the manufacture for
sale under this DSupplemental Code of electrical products included~
within the scope of the Electrical Mlanufacturing Industry as defined
in the Code of Fair Competition for saidi Industry, except where
such electrical products are sold as a part of the products of this
Subdivision and are not sold as separate electrical products in com-
petition with similar products included within the scope of the
Electrical Mianufacturingi Industry as defined in the Code of Fair
Competition for said Industry; provided, however, that any em-
ployer hereunder may manufacture and sell under this Supplemental
~Code any spare and /or replacement parts of any such electrical
products for use with products defined hereunder, which wrere
originally manufactured and sold by him.







When carried on at the point of installation, the work of installincg9,
lerectingL, rebuilding and/or servicing of the products of the Subdivi-
sion (including a~ttach mn tsi; accessories and/or replacement and re-
pair parts therefore, included within. the definition of the Subdivi-
sion) shall be subject to the provisions of this Supplemental Code,
only wh~len performedle l by the employer hereunder selling such prod-
ucts or by a compal~ny affiliated th~erewith.
"' Code "means the Code of F~air Competition of the Manchiner~y
and Allied Products Industry, as approved by the President, March
17, 1934, 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.
"L Employer means a~ny person engaged in the Subdivision, either
on his own behalf, or as an employer of labor.
"L Employee means any one who is employed in this Subdivision1
by any such employer.
"LAppr~entice" means an employee who is regularly engaged in
learning a trade under a course of training designed to advance him
systematically in the various operations of such trade to become a
competently skilled mechanic.
The Act means Title I of the National Industrial Recovery
~Act.
The President means the President of the United States.
The ~Admninistrator maeans the ,Administrator for Industrial
Recovery.
Basic 'Code Authority means the Code Authority for the Ma-
chinery and Allied Products Industry as constituted by the Code.
Code Authority means the Code Authority constituted for this
Subdivision as provided by the Code and by this Supplemental Code.
Group Code Authority means the Code Authority for any
group or product classification. within this Subdlivision.
Experimental Machine means a machine of new design~ or type
which requires mechanical experimentation in its development and
which requires operation and testing to establish its ability to per-
form the functions for which. it was designed and manufactured.
ARTICLE III-EMPLOYMENT PRoufsIONs
The following articles of the code, vis: ALrticle III, Workinga
Hours "; Article IV, Wages "; and Article V, General Labor Pro-
visionrs r eeymade a part of this Supplemnental Code, wiith
the same effect as ifheweewitnitthsSplmnaCo.

ARTCLE IV--ADOPTION Or OTHE ]PROVISIONS OF CODE

The following Articles of the Code, viz: Article VIt Adminis-
tration anld Article VIII, Modifi~cations and Termmnation "t
the -extent that they shall be applicable to this Supplemnental dd
as such, or as it may hereafter be administered as an autonomous
Code, are hereby adopted and made a part of this Supplemnental
Code with the same e~ect as if they were written into this SuLpple-
m-ental Code.







AnTicE V-ADMIINISTRATION
(a) A Code Aulthority is hereby constituted to administer and
supervise, andl to facilitate the enforcement of, the Code and of this
Supplemental Cod~e.
During the per~iodl not to exceedl isity days fo~llowing the effective
date of this Supplemental Code, the Board of Dir~ectorsa of the Ap-
plicant shall constitute a temporary Code Authority. The Admin-
Istrator, in his discretion, m~ay appoint one additional memer (with
out vote and without expense to the Subdivision).
The temporary Code Authority shall, within sixty days after this
Supplemental Code becomes effe~ctiv~e, set up a permanent Code Au-
thority to succeed the temporary Code ~Authority. Such permanent
Code Authority shall be elected at at meeting called for this purpose,
to which all knowfn employers in this Subdivision shall be invited
on at least te days' notice by registered mail, with the right to vote
either inl person or b roXY.
The permanent CoeAuthority shall consist of three members,
who shall be connected with employers within the Subdivision, no
two of whom shall be representatives of the same employer. The
Administrator, in his discretion, may appoint one additional member
(without vote and without expense to the Subdivision).
Any employer in this Subdivision. shall be eligible for member-
ship Inl the Applicant.
Any employer in the Subdivision shall be entitled to vote (subject
to the provisions of Section (a) of this Article V) at the election of,
and share in the benefits of the activities of, the Code Authority and
may participate in any endeavors of the Code Authority, by playing
his pro rata share of t~he reasonable cost of creating and admiis-
tiring it as determined by the Code Authority.
The members of the permanent Code Authority shall be elected
in the following manner:
(1) Employvers in the Subdivision who are not members of the
Applicant shall, if they so desire, be entitled to have one of their
number a member of the permanent Code Authority Such. desire
shall be evidenced by such employers at the meeting fo h election
of the permanent Code Authorit~y. If the non-members of the Appli-
cant desire to elect one of their number to the permanent Code ALu-
thority, this member shall be elected byv a majority vote of such
employers present in person or by proxy, each such employers to have
one vote; and two members shall be elected from ;and by the em-
ployers who are members of the Applicant, by a fifty-one per cent
vote of such employers present in person or byV proxy on thie basis
of one vote for each such employer, and one additional vot for each
such employer for each $150,000, or fraction thereof, of sales of
products of this Subdivision made by him in the calendar year 1932,
as reported by him to the Code Authority.
o(2) In case such representation is not desired by the non-members
ofteApplicant, as provided in the next preceding paragraph
marked (1), then one member shall be elected to the permanent Code
Authority by a majority vote of employers present in person or by
proxy, each employer to have one vote; and two members shall be
elected from and by the employers who are members of the Appli-








calnt by a fifty-one per cent vote of such employers present in person
or by proxry on the basis of onle vote for each such employer, and
one additional vote for each such emnployer for each $150,000, or
fraction thereof, of sales of products of this Subdivision made by
him in. thle calendar year 1932, as reported by him to the Code
Authority.
Any vacancy on the Code Authority, due to death, resignation, or
because a member thereof has ceased to be connected with, this Sulb-
division, shall be filled at a meeting of employers called by the Code
Authority on at least ten days' notice by registered mail sent to all
known employers in this Subdivision, and by a vote similar to the
vote by which the retired member was originally selected.reuain o t
The Code Authority shall adopt rules and euain o t
procedure and employ such personnel as it may deem necessary.
(b) In order that thne Code Authority shall at all times be truly
representative of the Subdaivision and in other respects comply with
the provisions of the Act, the Administrator may provide such haear-
ing;s as he may deem proper; and, thereafter, if he shall find that the
Code Authority is not truly~ repr~ese~lnttive or does not in other re-
spects comply with the provisions of th~e Act, may require an appro-
priate modification in the method of selection of the Code Authority,
or any Group Code Authority.
(c) Action by employers in1 any Subdiv~ision. meeting for the
adoption of procedural rules, revisions, or additions to the Supple-
mental Code, or the transaction of other business of the Subdivision,
shall be by vote of the employers in the Subdivision who are entitled
to vote threat, as provided in this Article V, and are present in
person or byT proxry duly executed and filed with the Code Authority.
Anly action taken at any meeting of employers shall~ be by a majority
vote (unless otherwise provided in this Supplem~ental Code) cast
and computed in each of the two followcPing methods:
(1)i By one vote for each employer;
(2 B ot o mpoer wihtdon the basis of one vote for
each $150,000 or fraction thereof of sales of products of this Sub~di-
vision made by him in the calendar y~eaP of 1932, as reported by him
to the Code Authority. 1Each. employer shall be entitled to at least
one such vote.
(d) With a view to keeping the President informed as to the
observance or non-observance of the Code and of this Supplemenltal
Code, and as to whether this Subdivision is talking appro'priate steps
to effectuate the declared policy of the Act, each. employer shall pre-
pare and file with such. person or orgaE~nization as the Basic Code
Authority or the Code ~Authority may designate and at such times
and in such manner as may by Basic Code Aut~hority or Code Author-
ity be prescribed (to be held and used subject to ~the limitations of
Article VTI of the Code and this Article V of this Supplemental
Code) statistics of plant capacity, volume of production, v~olum~e of
sales in units and dollars, or~er~s received, unfilled orders, stocks on
hand, inventories, both raw and finished, number of employees, wage
rrates, employees earnings and hours of work, and such other related
data or info~rmatioon as the Basic Code Authority or Code Authority
play from time to time require.








In addition to information required to be suibmitted to Basic Code
Authority or C'ode A~uthority, thcire shall be furn~lished~ to G~overn-
mient agencies suchi statistical information as the Presidecnt. may deen
nececssary for the p~urp~oses reccited in ~Sectioni 3 (a) of thle Act. TIhe
records required~ for s~uchl purposes shall be: created and malinltained~
in such a way as to disclose accur~ntely the information Irequir~ed from
time, to timie by Governmient ageneses under the provision~ls of this
Section (d) and of Section (e) of Alrticle VI of the Codec.
(e) Except as othlerwise provided in thle Act, all indiviidulal s~ta-
tistics, dlata, and informnationn of individual emlployers, filed in ac-
cordance with the provisions of the Ciode and of this Supplemenetal
Code shall be kept confidential; provided, however, that nothingi
therein shall prevent the publication of general summriesl of such
statistical data and information.
The statistics, data, and information relating to any one employer
shall not be revealed to any other employer, or to anyone, except
for the purpose of administering, or facilitating the enforcement of
the provisions of the Code or of this Supplemental Code. The Basic
Code Authority, or t~he Clode Authority, by its duly authorized repre-
sentati ves (wmho shall not be an employger or in t~he employ of any
employer affected by the Code or this Supplemlental Code) shall have
access to any and all statistics, data and information that may be
furnished in accordance with the provisions of the Clode or of this
Supplemental Code.
(f) Aggregations of employers having a common interest and
common problems may be grouped by Code Authority for admin-
istrative purposes into various groups or product classifications.
In each group or product classification there may be a Group
Code Authority approved or appointed by Code Authority.
(g) If formal complaint is made to Code Authority that provi-
sions of the Code or of this Supplemental Ccode have been violated
by any employer in this Subdivision,, the Code Authority or the
proper Group Code Authority may, to the extent permitted by the
Act, cause such investigation or audit to be made as may be deemed
necessary. If such investigation is made b Group Code Authority,'b
it shall report the results of such ivsiaino ui oCd
Authority for action.
(h) If any employer in this Subdlivision is also an employer in any
other industry, the provisions of this Supplemental Cjodfe, and the
jurisdiction of Code Authority hereunder, shall apply to and affect
only that part of the, business and product of such employer which
is within this Subdivision.

A~nican VI-AcCOUNTING AND COSTING
TheCod Auhortymay cause to be formulated an accounting
system and methods of otfnigado siaigcpbeo s
by all employers in 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 deter-
mine and/or estimate costs in accordance with the principles of such
methods.








ARTICLE ~VII-SELLING BELOW~ REASONABBLE COST
SECTION 1. When the Code Authorityr determines that an emer-
gency exists in this Sutbdivision. and that the cause thereof is destrue-
tive price-cuttinlg such as to render ineffective or seriously endanger
the maintenance of the provisions of this Supplemental Code, thec
Code Authority may cause to be determ1inedl the lowest reasonable
cost of the products of this Subdivision, such. determination to be
subject to such notice and hearing as the Administrator may require.
The Administrator may approve, disapprove, or modify the determi-
naltion. Thereafter, during the period of the emergencyt it shall be
an unfair trade pra:c'ticet for any employer of the Subdivision to sell
or offer to sell any products of th~e Subdivision for which the lowest
reasonable cost has been determined, at such prices or upon such
terms or conditions of sale that the buyer will pay less therefore than
the lowes~t reasonable cost of such product or products.
Whenf Jit appers tha)t. conndtions haveD changed, the Code Authority,
upon its own initiative or upon, the request of any interested partly,
shall cause the determination. to be reviewed.
SECTION 2. The foregaoingr Section (1) shall not apply to (a)
dropped lines, or (b) seconds, or (c) inventories which must be
disposed of by any employer at any price and on any terms or condi-
tions, but only if such employer, not less than two weeks before such
proposed disposal, has filed with Code Authorit a sta~temrent in
wclriting setting forth the facts of, and reasons fr such proposed
disposal and the price and terms and conditioons of sale, and Code
Authority has not, with the approval of the Aldministrator, before
the termination of such t~wo week period, in writing, disapproved
the proposed disposal. Notice of such disposal, if not disapproved,
shall be sent immrediately to all employers manufacturing products
of equivalent design, character, quality or specifications, who may
sell such products at prices and on terms and conditions as favorable
as those stipulated in the proposed disposal, when meeting the com-
pe~tition of such proposed disposal.
SECTION 3. The foregoing Section (1_) shall not apply to a, sale
made in order to meet competition on products manufactured out-
side the United States. 1For such disposal, any employer may sell
at prices and on terms and conditions as favorable as those on the
competing foreign product, but only if hne hlas first reported to the
Code Authority his intention so to sell, and the! facts as to the com-
petition. which justifies such action.
ARTICLE VIII-RADE PRACTICES
1. NJo employer shall secretly payr or allow rebate, subsidy, refund,
commission, credit, unearned discount, or excess allowance. whether
in the form~ of money or otherwise, nor shall any employer inl thle
Subdivision secretly offer or extend to any customer any special
service or privilege not extended to all customers of the same class,
for the purpose of influencing a stale.
2. No employer shall' publish advertising (wFhether printed, radio,
display, or of any other nature) which is misleading or inatccur~ate
in any material particular, nor ishall anyemployer in any way mlis-








represent any goods includingg but without limitationr its Iuse, trade
mark, grade, quality, quanltity, or~igrin, size, substanlce, character, na-
ture, finish,. malterial. contenlt, o~r plreparation) or crei~iit terms, values,
policies, serv\ices~, or thle nalfItre or form~1 of theC buIsinessj cond1Luctfed.
3j. N'o emplloyecr shanll pu~blishI or CirclaCllte unljustfied. C or unwar-
ranted threats of leganl prloceedlingr s whichI tendr to or halve thle effect
of harassing competitors or intimiida~ting their customers.
ARTICLE ]EIX DscoL: Ns noT T]CElns or SALE
1. No employer shall sell to or through any distributor whrfo does
not agree to r~esell in accordannce with th~e provisions of Ar~ticle VII
and Article VIII.1
2. Cash discounts allowed on invoices rendered to customers or
purchasers by an employer shal not be granted after the expiration
of the discount period or term established by such employer. Each
employer shall file with Clode Authority a written statement of Ihis
established discount period or ter mwhich shal remain in effect until
such employer shall file, in writing, with Code Authority a proposal
to modify his discount period or term, which modificatlon shall be-
come effective on. the date of such :filinga.
3. The provisions of this Supplemental Code concerning pricing,
marketing and costs shall not apply to experimental machines, con-
tracted for at a fixed price.
ARTICLE X- ALES ImRB EXPORT

The provisions of Articles VII and IXZ of this Supplemental Code
are not to apply to direct export sales of any product or to sales of
any product destined ultimately for export. The terma export "
shall include shipments to all places without the several states of the
United States and the District of Columbia.; provided, however, that
no shipment to any territory or possession of the United States shall
be considerred an export when any employer is engaged in the Sub-
division urch territory or possession.
ArHTICLE XI-1\IODIFICATIONS AND TERMIINATION

(a) As provided by Section 10 (b) of the Act, the President may
from time to time cancel or modify any order, approval, license, rule,
or regulation issued under Title I of the Act.
(b) Any amendments, additions, revisions, or supplements of this
Supplemental Code, proposed byv Code Authority, and approved by
a 66tS o vote of the employers (in person or by proxy) on the basis
of one vote for each employer and one additional vote for each em-
ployer for each $150,000. or fraction thereof, of sales of products of
this Subdivision made by him in the calendar year 1932 as reported by
him to Code Authority, shall be in full force and effect upon approval
by the President.
-This Supplemental Code shall terminate June 16, 1935, or on such
date prior thereto when the Act shall be repealed, or the President
a Bee paragraph 2 of order approving thle Code.








shall, by- proclamation, or the Congress shall, by joint resolution,
direct that the emergency recognized by Section I of the Act has
ended.
ARTICLE, XII- ITIIDRAWAL

~As is provided by A~rticle IXI of the Code, upon 30 days' notice to
Basic Code Aiuthority and to the Administrator, this Subdivision
may, upon the 6623%0 vote of the employers (in person or by proxy)
with-in this Subdivision, on the basis of one vote for each employer
and one additional vote for each employer for each $150,000. o
fraction thereof, of sales of products of this Subdivision mnde b
him in the calendar year 1932 as reported byT him to Code Authority,
withdraw fromn the jurisdiction of Basic Code Authnority. There-
after, this Supplemental Code, toge6rthler with the provisions of the
Code as may be applicable to this Subdivision, shall become and be!
the codegoverningr this Subdivision, and the Code Authority, shall,
for this Sbdivision, beeclnme and be the only Code Authority and
shall perform all the functions with respect thereto.

ARTICLE XIIII--I\TON-O POrLIES

Ap~plicant. imposes and shall impose nlo inequitable restrictions on
membership therein. This Supplemental Code presented by it is
not designed to promote monopoly, and shall not be so construed or
applied as to oppress or eliminate small enterprises or discriminate~
against then, and is designed to effectuate the policy of th~e Act.
ARTICLE X23IVT-EjFFECTIVE DA'E

This Supplemental Code shall become effective and binding: on. all
persons engaged in the Subdivision on the eleventh day after its
approval by the President.
Approved Code No. 347--Supplement No. 31,
Registry No. 1399-57.








IllrIVEn- ITY OF FLORIDA


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