Supplementary code of fair competition for the forged tool manufacturing industry (a division of the fabricated metal pr...


Material Information

Supplementary code of fair competition for the forged tool manufacturing industry (a division of the fabricated metal products manufacturing and metal finishing and metal coating industry) as approved on March 24, 1934
Portion of title:
Forged tool manufacturing industry
Physical Description:
12 p. : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


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


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1149-29."
General Note:
"Approved Code No. 84--Supplement No. 9."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004940637
oclc - 63655368
System ID:

Full Text





(A Division of the Fabricated Metal Products
Manufacturing and Metal Finishing
and Metal Coating Industry)


UI.S. DEPO 7''r

I' I
Par sal b ties Spernlaandent of Documents Wealdngton, D.C. - Price 5 center

Approved Code No. 84--Supplement No. 9

Registry No. 1149--29


This publication -is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
Foreign and D~omestic Commerce.
Atlanta, Ga.: 504 Post Office Building.
Birming~ham, 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, 201I North Wells street.
Cleveland, Ohio: Chamb~er of Commaerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
K~ansas City, Mo.: 1028 Baltimaore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, K~y.: 408 Fe~rdernl Building.
M~emnphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 F'ederal Building.
Newv Orleans, La.: Room 225-A, Customhouse.
Newr York, N.Y.: 734 Customnhouse.
Norfolk, Va.: 406 East Plume Street.
Plhiladelphia, 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 Custombouse.
Seattle, Wash.: 900) Fedleral Office Building.

Approved Code No. 84--Supplement N~o. 9



~As Approved on March 24, 1934



An application having ~been duly madle pulfrsuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved Jrune 16j, 1933, and in accordance with the
provisions of Section I of Article VI of the Basic Code for the Fab-
ricatedl Mletal Products M~anufacturilgr and M~etal Finish~ing and
Metal Coating Industry, approved Novemlber 2, 1J3:3, for approval
of a Supplementary C~ode of Fair Competition for the Forgred T1ool
Manufacturing Industryv, and hearing having: been duly held thereon;
and the annexed report onl said Supplemlentury Codle, containing
findings with respect thereto, having been madre. and directed to the
President :
NOWV, THEREFOREI, onr behf-alf of thre Presidlent of the U~nited
States, I, H~ugh 8. Johnson, Administra~tor for Indurstrial Recovery
pursuant to authority vested in mle byJ Executive Orders of thie Presl-
dent, including Executive Order -No. 654i3-A, dated D~ecembr 30,
1933, and otherwise; do hlerebyv incorporate by reference said an-
nexed report and do find that said Siupp>lement.alry Code complies
in all respects withi the pertinent provisions and will pro~mot~e th
policy and purposes of said Title of said Act; and do hereby order
that said Supplementary Code of Fair Competition be and it Is here-
by approved; provided, however, that the provisions of A~rticl V~II
Parag~raph (a), insofar as they ~prescribe: a waiting period between
the filing with the Code Authority and the effective date of revised
p~Jrice lists or revised terms and conditions of sale be and they are
heeystayed pending my further Order either within a period of
sixty days from the effective da~te of this Supplementary Code or

after the completion of a study of open price associations now being
conducted by the National Re~coe~ry Administration.
Huancrr S. JoanusoN,
Admzinistrator for Indulstr~ial R~ecovery.
Approval recommended :
Division Admin istrflat or.
W~IsmxaNToN, D.C.,
March 94, 1934.


T~he White House.
Sm: This is a report on the Sulpplementary Code of Fair Com-
npetition for t~he Fo~rged Tool M~anufacturing nutradviino
the Fabricated Mietal Products Ma~nufacturingg and M~etal F'inishing
and Meal Coating Industry, thre hearing having been conducted
thereon in W7ashington, D.C., Februanry 16, 1934, in accordance wit
th provisions of Title I of the NESational Industrial Recovery Act.
The Fonrged~r Tool Ma~nulfacturirin Industry, being utrul representau-
tive of this division of the Fabricated M~etal Produt auatr
ing andr MeTtal Fiinis~hing and M~etal Coating Industr~y, has elected to
avail itself' of the option of submuittinga a Supplementary Code of Fair
Competition, as provided for in. Section 1 of Article VI of the Basic
Code, for the F~abricated M~etal Products M1Sanufacturinga and Metal
Finishing and [Metal Coatin~g Industry approved by you on the
second day of November, 1933.
Article I: states the purpose of the S~upplementar~y Code.
Article II accurately defines specific terms employed in th~e Sup-
plementary Code.
Article III. This Indust~ry is a division of the Fatdbricated Mlletal
Products M~anufacturing and Metal Finishing and Metal Coating
I~ndustryr and the labor provisions of its B3asic Code, as approvedI
November 2, 1933, are the labor provisions of this Supplemlentary
Article IV establishes a Supplementary Code Authority consisting
of four (4) members to be elected by the members of the Industry
at a meeting called by the Temporary Supplementary Code Author-
ity, and gives the Administrator the authority to appoint one addi-
tional member without vote and prov~ides ma~chinery for obtainingr
statistics and the admiinistration of the Supplemnentaryr Code.
Article V provides for an accounting system and methods of cost
finding and/or estimating.
Article VI provides for determiining the lowest reasonable cost of
the products of this Indust~ry in periods of emergency.
Article VII provides methods of setting up and revising price lists,
and for investigation of prices on the initiative of the Supplementary
Code Authority or on thle complaint of a member of the Industry.
Article VIII sets forth the unfair trade practices of this Supple-
mentary Code which has been especially designed to offset unfair
competition in this division of the Industry.

Article IX provides against monopolies and monopolistic practices.
Article X contains the mandatory provisions contained in Section
10 (b) and also provides for the submission of proposed amendments
to the Suppementaryl Code.
Article XIrecognizes that price increases be limited to actual
additional increase in the seller's costs.
Article XII states the effective date of this Supplementary Code.

The Assistant Deputy Administrator in his final report to me on
said Supplemnentary Code having found as herein set forth and on
the basis of all the proceedings in. thnis matter:
I find that:
(a) Said Supplemaentary Code is well designed to promote the
policies and purposes of Title I of the National Industrial Reecovery
Act, including removal of obstructions to the free flow of interstate
and foreign commerce which tend to diminish the amlo~unt thereof
and will provide for the general welfare by promoting the organiza-
tion of industry for the purposes of cooperative action among the
trade groups, by inducing and maintaining united action of labor
and management under adequate governmental sanctions and super-
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 mecreasmng purchasing
power, by reducing and relieving unemployment by improvmng stand~-
ards of labor, and b~y otherwise rehabilitating industry.
(b) Said Industry normally employs nzot more than 50,000 em-
loees; andi is not classified by me as a major industry.
(c) Th uplemzentary Code as approved complies in all respects
with the pertmnent pro~visionzs of said Title of said Act, include
without limitation Subsection (a) of Section 3, Subsection (a) o
Section 7, and Subsection (b) of Section 10 thereof ; and that the
applicant group is an industrial group truly representative of the
aforesaid Industry; and that said association imposes no equitable
restrictions on admission to membership therein.
(d) The Supplementary Code is not designed to and will not per-
mit monopolies or monopolistic practices.
(e) The Supplementary Code is not designed to and will not elimi-
inatee 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
Supplementary Code.
For these reasons, therefore, I have approved this Supplementary
Code, with a 60 day stay of the provisions prescribing a waiting
period between the filing and effective date of revised price lists.
IHanH 8. JorNxsonJ,
Mlv~nonL1 24, 1934.




To effectuate the policies of Title I of the National I~ndustrial Rje-
covery Act, the followingr provisions are established as a Sulpplemen-
tary Clode of F~air Comlpetition for the ]Forged TlCool M~anufacturing
Industry. Pursuant to Article VI of the `IBasic Code of Fair Com-
petition for the Fabricated MIetal Products M~anufacturing and
Metal Finishingr and Mletal Coating Industry, approved by the
President of the United States on the second day of Novemlber, 1933,
and upon approval by the President of the United States, the Pro-
visions of the Supplementaryr Code shall be the standard of Fair
Competition for and shall be binding upon every member thereof.
SECTION 1. The term Forged Tool Mannurfacturing Inldustry ",
hereafter referred to as the Industry, is defined to mean the manu-
facture for sale in whole or substantial part, of Forged. Hand Tool
products, such as picks, mattocks, heavy eyle hloes, crow, and other
pry and digg~ing bars, woodchoppers' w~edg~es, woodchoppers' mauls,
heavy hammers, sledges, and miscellaneous railroad tralck hand tools,
track chisels, track wrenches, anvil tools and blacksmith tongs.
SECTION 2. The term "' employee ", as used herein includes anyone
engaged in the Industry in any capacity receiving compensation for
his services, irrespective of the nature or method of payment of such
SECTION 3. The term "L employer ", as used herein includes anyone
by whom any such employees is compensated or employed.
SECTION 4. The term member of the Industry ", as used herein
includes, but without limitation, any individual, partnership,, asso-
ciation, corporation or other form of enterprise engaged In the
Industry either as an emiployer or on his or its owrn behalf.
S'ECTION 5. The terms "' Pr~esident Act and Administrator "
as used herein shall mean respectively the President of the United
States, the National Industrial Recovery Act, and the Administrator
for Industrial Recovery under Title I of said Act.
SECTION 6. The term Basic Code ", as used herein is defined to
mean the Basic Code of Fair Competition for the Fabricated M~etal
Products Manufacturing and M~etal Finishing and Mletal' Coating
Industry as approved by the President of the United ~States on the
second of November, 1933.

SECTION 7. The term Suppl~lleentaryy Code Authority ", as used
herein means the agn~cny which is to admrinistterl this Supplementary
Code as hereinafte~r provided.
SECTION 8. 1118 terml Society is de~finedl to mean the Forged
Tool Society or its successor.
S;ECTION 9. 'I118 t6TH1' FedefailOR ", RS used herein is defined to
mean thne Fabriented Mletanl Prodlucts Federation or its successor.
SECTION. 10. The term Secretary is defined to mean the Secre-
tary of the above named~t Sc~ie~ty, or its successor.

Thnis Industry is a division of the Fabricated Metal Products
Manufacturing and M~etal Finis~hing and M~letal Coating Indlustry,
and without limitation the wage, hour and labor pro-visions in Articl
III1 of its Basic Code as approved by the President November 2,
1933, including Section 1 of said Article III by which the provi-
sions of Sub-sections (1), (2) and (3) of Section 7 (a,) of T'itle I
of the Act are made conditions of the Code, are specifically incor-
porated herein and made a part hereof as thne wage, hour and labor
provisions of this Supple~mentaryS Code.

SECTION 1. During the period not to exeed~ sit (60) daysv~ fol-
lowing the effective date, the Supplemnentary CoeCommittee of
the Industry shall constitute a temporary Supplementary Code
Authority until the Supplementary Code Aulthor~it~y is elected. There~
shall be constituted within the sixty-day period a Supplemnentary
Code Authority consisting of four (4) mem~bers~ to be elected by the
mlembers of the I~ndustry, at a mnee~ting called by the Temlporary
Supplementary Code Authority, upon tenl days' notice sent. by regis-
teredl mail to all known members of the Industry, who may vote
either in person or byr proxy. The members of the Sup-plemnentary
Code Authority first elected shall serve until the following annual
meeting of the Society, and thereafter, mem~rber~s of the Supplement-
taryy C~ode Authority shall. b~e elected at each alnunul meeting of thle
Society to serve until the following annual meeting. The mlemnbers
of the Sup~plementary Code Aluthority shall be elected in the follow-
ing manner:
(a) One (1) mlemnber who shall be a member of the Indu~stry by
a majority vote of all membllers of the Industry present in person
or by pr~ox, each member to have one vote.
(b) One (1) member who is not a member of the Society by a
majority vote of all known mlemblers of the I~ndustry who21 are non-
memubers of thne Society. Provided, however, that if the kinown
members of the Industry who~ are not members of the Society, shall
fail to so elect a member from am~on~g their number, thn in thl~at case,
the members of the Society, each mlember having one vote, shall selectP
twvo members, neither of -h ich is a member of the Society and certify
their names to the Admlinistr~ator, who will select one only of the
two so elected, to be a member of the Supplementa~ry Code Authority.,
(c) Two (2) members by fifty-one percent (5170) vote of mem-

bers of the Society, present in person or by proxy, weighted on the
basis of one vote for each member and one additional vote for each
$5,000. of annual sales in the p~revious calendnt ycar reported to the
temporary Supplemenitary Code Authority; provided, however, that
no one memlber may cast more thanl 331,& percent of total numer of
votes cast.
A vacancy inl the membership of the Supplementary Code Author-
ity may be filled by a majority vo~te of t~he remaining members of?
the Supplementary Code Authority (provided. however? that the
right to vote, as set forth above, shall be subject to the. liiation
provided in Section 4 of this Art~icle). In addition thereto the Ad-
ministrator mlay appoint one member without vote, to serve on th
Supplementary Code AuthorityS who shall, together with thle Adlmin-
istrator, be given notice of andl mnay sit. at all meetings of the Supple-
mentary Clode Authority.
SECTION 52. Any SCocietyl directly or indirectly~ participating int the
selection or activities of thle SupplementaEry Code Authority shall
(1) impose no inequitable restrictions on membership, and (2)ub
mit to the. Administrator true copies of its Article(cs of Associa~tion,
By-Laws. Regulations and any amendments whien made thereto,
together with such other information as to membership, organization
and activities as the Administr~ator may dleemn necessary to effectuate
the purposes of the Act.
SEcTION 3. In order that thle Supplementary~ Clode AulthorityT shall,
at all times, he truly representativee of the Induistry and in other
respects comply with the provisions of the Act, the Admninistrator
may prescribe suchl hearIings as he may dleem proper; and, thereafter,
if he shall find~ that the Sulpplemnentary Code Authority is not truly
representative or dfoes not in other respects comlply wit the provi-
sions of the Act, may requlire remnoval of any or all of the members
thereof andl may make an appropriate modlifientiol or m~odifientions
i n the miethiod of select ion of the Suplpl~riementary Code Authority.
SECTION 4. All members of thle Indlustry are subject to th~e jur~is-
diction of this Sulpplementar~y Code; a nd all members of the Indus-
try shall be entitled to participate in and shar~1e the benefits of the
SuppDlementary Codte Author~ity; FJhall be entitledl to vote as provided
in Section 1 of thiis Article, andc ,chall pay~ their reasonable share of
the expenses of the Adminiiisitratn of this Suipplementary Code, such
reasonable share to be dletermiined by the Supplementary Codle Au-
thority subject to review by thle Admninistrator on the basis of vol-
ume ofb~usiness and /or such orther factors as may be deemed equitable
by the Supplementary Code Authority.
SECTION 5. Nothing contained in the Supplementary Code shall
constitute the members of t~he Sulpplemnentary Code Authlority
partners for any purpose.
SECTION 6. The Supplemnentary Code Authority shall have the
following further powers and duties:
(a) To insure the execution of the provisions of this Supple-
mentary C~ode and provide for the compliance of the Industry with
the provisions of the Act.
(b) It shall have power to use such trade associations and other
agencies as it deems necessary provided that nothing herein shall
relieve the Supplementary Code Authority of its duties or responsi-
bilities under this Supplementary Code.

(c) To adopt such, by-laws, rules and regulations as are necessary
for its procedure and for the administration of this Supplementary
(d) To obtain from members of the Industry such information
and reports as are required for the administration of the Supple-
mentary Code, which information and reports shall be submitted by
the members to such administrative and/or government agencies as
the AdminitaratCor m designated; provided that nothing in, the
Suppemetar Coe sall relieve any member of the Industry of
any7 existing obligations to furnish reports to any government agency.
All individual and private information shall be submitted to the
Secretary, or other appointee of thre Supplementary Code A~uthorityJ
and shall be held in strict confidence and not disclosed to any com-
petitor or other persons outside the Secretary's office, without the
permission. of the member of the Industry involved.
Provided, however, that such information may be disclosed to any
authorized governmental agency as directed by the A1Sdministrator.
Provided, further, that when necessary in th~e hearing of a com-
plaint, information, resulting from an investigation, mnay be dis-
closed to the Supplementary Code Aluthority or its appointee, and
Provided, further, that information pertaining to the reporting
of prices, term~s and conditions may be disclosed to effectuate the
purposes of this Supplementary Code.
(e) To make recommendations to the Administrator for the coor-
dination of the administration of this Supplementary Code with
such other codes, if any, as may be related to the Industry.
(f) To appoint a trade practice committee which shall meet with
the trade practice committee appointed under such other Code or
Codes as may be related to the Industry for the purpose of formru-
lating fair trade practices to govern the relationship between pro-
duction, and distribution employees under this Supplemnentary Code,
and under such others to the end that such fair trade practices may
be proposed to the Admihistrator as amendments to this Supple-
mentary Code and such other Codes.
(g) To secure from members of the Industry an equitable and
proportionate payment of the reasonable expenses of maintaining
the Supplementary Code Authority and its activities.
(h) To cooperate with the Administrator in. regulating the use
of any K.R.AI. insignia solely by those members of the Industry
wlho have assented to, and are complying with, thiis Supplementary
(i) If the Administrator shall determine that any action of the
Supplementary Code Authority or any agency thereof mnay be un-
fair or unjust or contrary to the public interest, the Admninistrator
may, after reasonable endeavor to confer with the Supplelemntary
Codte Authority, require that such action be suspended to afford an
opportunity for investigation of the merits of such action and further
consideration by the Supplementary Code Authority or agency pend-
ing final action, which shall not be effective unless the Administrator
approves or unless he shall fail to disapprove after thirty (30) days'
notice to him of intention to proceed with such action in its original
or modified form.


The Code Authority shall cause to be formulated an accountingf
system and methods of cost finding and/or estimating, capable
use by all members of the Industry. After such system and methods
have been formulated, full details concerning them shall. be made
available to all members as shall full details oaf al changes therein as
and when madte. Before becoming effective the cost system and
methods of cost finding and estimating and all changes therein shall
be filed with the Administr~ator subject to his disapproval withi
thirty (30) days. Thereafter all members shal detrmn and/or
estimate costs in accordance therewfith.

When and if, the Supplementary Code Authority determines that
an emergency exists in the Industry and that the cause thereof is
destructive price-cutting such as to render ineffective or seriously
endanger the maintenance of the provisions of this Supplementary
Code, the Supplementary Code Authority may cause to be deter-
mined the lowest reasonable cost of the products of this Industry,
such determination to be subject to such notice and hearing as the
Administration ma reqire. Thereafter, during the period of the
emergency, it shall be "an unfair trade practice for any member of
the Industry to sell or offer to sell any products of the Indlustry
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 therefor than the lowest reasonable cost of such products.
When it appears that conditions have changed, t~he Supplementary
Code Authority, upon its own initiative or upon the request of any
interested party, shall cause the determination to be reviewed.
However, dropped lines or seconds or inventories which must be
converted into cash to meet emergency needs may be disposed of
by any member of the Industry, at aypriendoaytrmad
conditions, but only if such member o~f thie Industr has fied withd
the Supplementary Code Authority a statement in writing, setting
forth the fact of. and reasons for, such proposed disposal.

(a) If the Supplemlentary Code Authority determines thIat it has
been the generally recogonizedl practice in the Industr~y to sell certain
products on the basis of net price lists, or price lists andl discount
sheets, each member of the Industry manufacturing and selling such
products shall, within ten (10) days after notice of such determi-
nation, fie with the Supplementary Code Authority a net price list,
or price list and discount sheet, in such formn and for such products
as the Supplementary Code Authority may prescribe, and the Sup-
plementary Code Authority shall immediately send copies thereof
to all known manufacturers of such products, and such lists shall be
available to all interested parties. Revised price lists and/or dis-
count sheets and/or all other conditions of sale may be filed from
time to time thereafter with the Supplementary Code Authority by

any member of the Industry, to become effective five (5) days after
actual receipt by the Supplemzentary Code Authority. Copies of
such. revised lists and/or discount sheets and/or all other conditions
of sale, with notice of the effective date thereof, shall be immediately
sent to all members of the Industry, and shall be available to all in-
tere~sted parties; an~d any member of the Industry may file, if he so
desires, revisions of his price list and/or discount sheets and/or con-
ditions of sale, which shall become effective at the date~ when thie
revised list first filed becomes effective, provided that he shall not
establish prices lower, nor discounts greater, nor conditions of sale
more favorable than those contained in the revised list first filed.'
(b) If the Supplementary Code Authority shall hereafter deter-
mine that in any branch or subdivision of the industry, not selling its
products on the basis of price lists, with or without discount sheets,
the distribution or marketing conditions in said branch or subdivi-
sion are the same as, or similar to, thle distribution and marketing
conditions in a branch or subdivision of the industry where the fil-
ing of price lists, with or without discount sheets and other Ifixed conr-
ditions of sale, has been required, an~d that the use of price lists, with
or without discount sheets and with fixed conditions of sale, should
be put into effect in such branch or subdivision, then each member of
the Industry manufacturing such product or products shall, within
twenty (20) days after notice of such determination, fi.le with, the
Supplementary C~ode ALuthority net price lists, or price lists with
discount sheets, containing all fixed conditions of sale, in such form~
as the Supplementary Code Authority may prescribe, and such lists
shall be immediately sent to all members of the Industry manufac-
turing such product or products, and shall be made available to all
interested parties and may be revised from time to time as provided
in Paragraph. (a) hereof :
Provided, however, that the Supplementary Code Authority shall
make no determination to place an~y product of the industry on a
price list basis, unless two-thirds of the members who are at that
time engaged in manufacturing such products shall aflFirmatively con-
sent that such determination. be made.
(c) The Supplement~ary Code Authority shall have power, on
its own initiative, or on the complaint of any member of the indus-
tryT to investigate any price or the terms of sale and payment for any
product shown in, any price list and/or discount sheet filed with the
'Supplemenrtary Code Authority by any member of the Industry.
Each member of thie Industry- shall furnish the Supplementary
Code Authority for distribution with such number of copies of his
price lists and/or discount sheets as Supplementary Code Authority
may prescribe.
(d) No member of the Industry shall sell, directly or indirectly,
by any means whatsoever, any product of the Industry covered by
provisions o~f this Article VI at a price or at discounts, or on other
conditions of sale different from. those provided in his ownl current
net price lists, or price lists and discount sheets.
1 Bee Daragraph 2 of order approving this Code.


In addition to the Unfair Trade Practices covered by Articl VP
of the Basic Code, for all purposes of this Supplementary Code the
following described acts shall constitute unfair practices. Any
member of the Industry who shall directly or indirectly through any
officer, employee, agent or representative use or employ any of such
unfair practices shall be guilty of a violation of this Supplementary
RouE 1. Brand~ing.--Failure on the part of a member of the In-
dustry to properly brand or idenltify his prduts with hris name or
his trademark, or other means of identification.
RULE 9. S~impificationl and Stanldardiz-atio of Pr~oducts.--The
Supplemuentary Code Authority shall mcak~e studies for the simlplifi-
cation of products of the Industry, the elimination of unnecessary or
infrequently demanded sizes or types anrd for the establshen of
dimensional standards in cooperation with the. Bureau of Standards
of the United States Deparlt~ment, of Commnere wcsithi thEe vie to their
recommendations for adoption by the Industry. This study shall be
completed within the period of three months from the efective date
of this Su'p~plementary C`ode. Such recommendations of th Supple-
mentary Coe Authority for the Industry, when proved by twro-
thirds vote of the members of the Industry, shall become th
standards for the industry and shall becom effective 30 days aftr
such approval. Thereafter, all members of the industry~ shall follows
such standards. Failure to .follow sulch standards set-up by the Sup-
plementary Code Authority, so approvled by the members of the
Industry, will be an unfair mlethodl of competition a.nd a violations
of this Supplementary Code. Provided, however, that exceptions to
such standards may be applied for by formally p etitioning the
Supplementary Code Authority, and if the Supplementary Code
Authority does not disapprove in writing within 60 days the peti-
tion shall become final when ratified by two0-thlirds vote of the mrem-
bers of the Industry, and if the Supplementary Code Authority
disapproves, an appeal may be taken to the Adminlistrator.
RULE 3. Selling on Con~signlmen t.-No member of the Indu storyy
shall ship goods on consignment except under circumstances to be
defined by the Supplementary Code Authority, where peculiar cir-
cumstances of the Industry require the practice.
RULE 4. SWA~titutioL.--The furnishing of articles more or less ex-
pensive, of better or inferior quality or of larger or smaller size
than specifiedl without making proper adjustment.
RULE 5. Lwnlp Sun Bids and Contracts.--To submlit a bid or bids
for two or more commodities, one or more of which is a, Forged Tool
Product in which the unit price of each commodity is not clearly
stated. Accepting orders or contracts for sale at a lump sum where,
the contract does not specify the exact quantity, quality, and unit
price of the product purchased.
Run 6. The making byv any member of the Industry of fals
statements or records to mislead or deceive the Supplementary Code
Authority and/or Secretary concernmg the compliance with any
article or section of this Supplementary Code.

RULE, 7. Commissions.--The splitting of commissions or other com-
pensation received by an employee or agent of the seller, wIith the
buyer for the purpose or w~ith the effect of influencing a sale.
Rnri 8. Dat~es, etc.-Srftating in the invoice of any product as the
date thereof a date later than the date of the shipment of such
product, or including in any invoice any product shipped on a date
earlier than the date of such invoice.
Rmzz 9. Service, Emxtras.--For the purpose of influencing a sale,
rendering to any purchaser of any product in connection. with the sale
of such, product any service, unless fair compensation for such service
shall be paid for by such purchaser.

No provision of this Supplementary Code shall be applied so as
to permit monopolies or monopolistic practices, or to eliminate,
oppress or discriminate! against small enterprises.

SECTION 1. This Supplementary Code and all the provisions thereof
are expressly made subject to thne right of the President, in accord-
ance with provisions of subsection (b) of Section 10 of the Act, from
time to time to cancel or modify any order, approval, license, rule
or regulation issued under said Act.
SECTION 2. This Supplementary Code, except as to provisions re-
quired by the Act, may be modified on the basis of experience or
changes in circumstances, such modifications to be based upon, appli-
cattion by the Supplementary Code Authority to the Administrator
and such Notice and H~earing as he shall specify and to become
effective and be a part of this Supplementary Code on approvcTal by
the Pre~sident.

Whereas the policy of the Act to increase real purchasing power
will be made more difficult of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price
increases except such as may be required to meet individual costs
should be delayed, but when made, such increases should, so far as
possible, be limited to actual additional increases ini the seller's costs.

This Supplementary Code shall become effective at 12: 01 A.M~.
o'clock~ on the tenth day after it is approved by the President.
Approved Code No. 84. Supplement No. 9.
Registry No. 1149-29.

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