Supplementary code of fair competition for the automobile hot-water heater manufacturing industry (a product group of the accessories division of the automotive parts and equipment manufacturing industry) as approved on June 25, 1934

Supplementary code of fair competition for the automobile hot-water heater manufacturing industry (a product group of th...


Material Information

Supplementary code of fair competition for the automobile hot-water heater manufacturing industry (a product group of the accessories division of the automotive parts and equipment manufacturing industry) as approved on June 25, 1934
Portion of title:
Automobile hot-water heater manufacturing industry
Physical Description:
11 p. : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Automobile supplies industry -- Law and legislation -- United States   ( lcsh )
Water heaters   ( 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. 1404-39."
General Note:
"Approved Code No. 105--Supplement No. 1."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004939839
oclc - 652478317
System ID:

Full Text





(A Product Group of the Accessories Division of the Automotive Parts
and Equipment Mlanufacturing Industry)

For sale by the Superintendent of Documents, Washington, D.C. ----- Price 5 cent

Approved Code No. 105--Suppleemen No. 1

Registry No. 1404--35



This publication is for sale~~999999~~~~~ggggg by the Superintendent of Doc-uments, Gove~- rnment
Printing Ofliee, Wa~shingyton, D.C., and by district o~fficets o~f thle Burleau of
Foreign and Domestic

Atlanta1, Ga.: 5i04 Orlicec 1:uiblling.
Birmi~inghm. Arla.: 2.I7 F'ederal Bul!ding,.
Boston, Alass. : 1801 ('urstombouse.
Buffalo, N.Y.: Cham~bcer of C annlulrrr c Duildling~.
Charleston. SO.: Chamlnberl of Conunenrci Buil~ing;.
Chicago, Ill.: Suite 1700,j "01 Nr'clthl \~11-ol Street.
Cleveland, Ohio: Chambere ~ If Comnmerce.
Dalllas, Tex.: Chamber1I(_I of Commerllt'Ce Hu:libling.
Detroit, ~Illich.: 801 F~irst lNaticlnal Bankl B~uildling.
H-ouston, Tex.~: Chambercl o~f Comumer~ce Buib~ling.
Judlanllnp~olis Inil.: Chambelcr of Commeu~r~ce Buildling..
Jacksonvillr. Fla.: ('llbumber~ of C~ommller'ce CUildling,
K~ansas City\, M~o.: r1028 I:;altinair~c- .\venlul.
Los Angeles, Calif.: 1103: Sou~thl Brloadway.3
Louisville, K~y.: 408 Fe-deral D~uildling.
Memph~is, Tenn. : 22!J Fedeilral Buildling., Minni.: 21.3 Fe~deral Building..
New Orleans, La.: R\oom~ 225-A, C'ustombouse.c
Newr Yorkr, N.Y.: T341 C'ustomhouse.
Norfolkr, Va.: 406 East Pilume Street.
Philaldelllllin, Pa.: 4122 C~ommercial Trust Building.
Pittsburgh, Pa.: Chamberl~ of Commercrc e Building.
Portland, Oreg.: 215 N~ew P~ost Of~lce Buildling.
St. L~ouis. MSio.: 506 Olive Street.
San ~r~anrelsro, Calif.: 310) Custombhouse.
Seattle, W~ash.: 8003 Federal Of~iee Buildling.

Approved C'ode No. 105--Supplement No. 1.



As Approved on June 25, 1934



An application having beecn duly made pur-unnt. to and in full
compliance~ with the prov,\isionsj of T~itle I of the N-ational Industria;l
Recovecry3 Act, approved June 16, 1P33;, for approval of a Code of
F'air Compeltitionl for th~e A~utomobile H-ot Wat~er Heater Manufac-
turing Product Group at the Accessories Divisionl of the Automotive
Parts and Equipment Maniu fact u ri ng Industry, a s~upplem~ent al Code
to the Basic Code of the Aultonotive Parts and Eqluipmn au
facturilng Industry, and hearnings~ having g beenl duly held herent and-
the alnexel Ireport on said~ Code, co~ntaining findlings with respect
thereto, hav-ingr beenll made and directed to the Pr~esidlent:
NOWi, THEREF;ORE, on behalf of the President of the U~nited
States, I, Hugh 8. Johnso~rn, Admtlinistrator for Industr~ial Recovery,
pursuant to un~thlority re-sted7 in mie by ~tExecutiv-e Ordlers of the Presi-
dent, inlclulinlg Executive Order No.5;31-A, dated Dec~embelr 30,
1933, andi othlerisei; do hereby incorporate by r~efernce said annexedc
report aIndl do findl that said C~ode compiles in all r~espectsi with the
pe rtinIe nt provrision~s and will promote the Policy andpurp)oses of
said Title of said Act; and do hereby order that snid Cde of Fair
Competition be andl it is hereby approved; provided', howeer, that
the provisions of Airtic~le TY, paragrauph (14), insofar as they pre-
scribe a w-aiting period betwTeen the filing with the Code Authority
(i.e. actual receipt by the Code Aut~horit~y) and the effective dalte of
60940*"---657- 151---341 (1)

revised~ price lists or I~~iirevis terms and conditions of sale be and
they are hler~ey stalyed~ pend'in~ rny further o-lc~trde.
HErcui Sc. Jonhson,
Adndn,1"i~striator for' /ICndf 'ustia Reco~er~y.
Approva"l reco~lrnmenied :
C. E. Annisu,
D~ivisiont Adm,1inl.i~stfratr /.
Jwree &~, 1934.


The W~t'fe Hoiuse.
SmR: The supplement to the Code of Fair Competition for the
Aiutomiotive Par~ts and Equipmient M~anufacturinea Industry covering
Fair Tradle Pranctices for the Aultomojbile Hot Vater Heater Manu-
fac~turing Pr~oduct Gr1oup, a, sub-dlivision of the said Industry was
submnittedl to the Administr~ator on October 6, 1933 by the HEot jater
Heater Inlstitute, representing alpproximatelyy 806/o of the total
volume of sales and membersI of the tr~ade.
TIhe Henc~ing was conducted in Washington on Decemlber 7, 1933
a~nd the supiplemlent wyas r~evisedl dur~incY the recess of this Hearinga
and is submitted in its present form fhor appr~oval. Ev.ery person
who r~equested an appearannc~e, was p~roperly heardl in accorda~nce with
thec st~atutoryS and1 regu~latory3 reqluirement-s.
Thet Pr~odlut G~roup is nlation-wride in chnaracter and has had a
large increase in numbnler of establits'hmlents in the past few years, as
in~ic~atedl by the figures submittedl, showingP 2, manufactutring con-
cerns in 199~8, as compared with 18 in 1933, with a corresponding
increased~ in the number of pe~rso~ns employed! from 100 in 1928 to
1000 in 1933.
A1RTICLE I: states the pur~pose. of the Supplementary Code.
AuRic IC a1 accurately defines sp~c~ific terms emplo~yedl in the Sup-
plementary Code. This Product Gr~oup is-a division of thie Auto-
mnotive P'arts and Equipmlent M~anufactur~ing Indcustry and the labor
prov\isio.ns of its Basic Code as approved November 8, 1933, are the
labor p~rovisio~ns of this Supplementary Code.
illTICL.E III establlish~e s an Adc'ministrative~ Co~mmlitteel, consisting
of thet Execurtive CIonuniticee of the~ Institute and one additional memn-
berl, to be selectedl at the d~iscre'tionI of the Admlrinistlrator and one
non-vI-oting membelri1, to be appointed by the Administentor.l It also
provides manchinery for obtaininig statistics and the administration
of this Codec.
ARTIC'LE IV Sets forth thne fair tra3de prasctices of this Suppler
mientury ~Code, which has beien especially desigined- to effect. fair
competition in this Pro~duct. Group of the Industry.
ARTICL.E V provides against monop~olies and monopolistic, practices
and provides for the submission of suplplementary provisions to this
supplementary Code or modifications thereof, andl contains the man-
daltryrJ prov-isions contained in Section 10 (b) of Title I of ~the Ac~-t,
and states th~e effective dlate of the. Supplementnlry Code shall mean
the tenth day\ after it has been approved by the President.
The Deputy Administrator in his final report to Ime on said Code
havingr foundl as herein set forth and on the basis of all the procleed-
ings in this matter;

I find that:
(a) Said Conde isP1 well idesned to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to thne fr~ee flow of interstate and foreign
commerce which tend to diminish the amount, thereof an1d will p~ro-
vide for the general welfare by promoting the organization of indus-
fry for the purp~co of coopera~ftive action amnong thle trade groups, by
ind~ucing and maintai mngll united action of labor and management
under adlequate. governmental .4anction; and s~upe-rvision, by eliminat-
ing unfair competitive practiics, by prkn~iotinga the fullest possible
utilization of the present productive capacity of industries, by avoid-
2ng undue restrictioni of pIroduction (exce~nt as5 may be temporarily
required'), by increasing the consu~lmption ^of industrial and agricul-
tulral prodiuc~ts thlroug~h inlcreasing pu'rchasing porer, by reducing
and relieving unemplloyment, byS improvingr standards of labor, and
by otherwise rehlab~ilitating industry.
(b) Said Produ~t. Group normally emnplorys not more than 50,000
emp~loyees;s and is not; classified by me as a major industry.
(c) Thle Suppl~lementary3 Code as ap2proved, com~liers in all respects
with the pertinent provisions ofa said Title of saiid Act., includling
without limitation iSubsectfion (a) of Sectionl 3, Subsection (a) o
Section 7 and Subsection (b) of Section 10 thereof; and that the
applicennt Insit~itute is an industrial group, trulyl representative of
the aforesanid Industry; and that s~aid Institute impos"es no inequi-
table r~estrictions on admission to membership therein.
(d) The Supplementary Code is designed to and will not permit
monopolies or monopolistic practices.
(e) The Supplementary CTode is not designed to and will not eliml-
inate or olppress small enterprises and will not operate to dliscriminate
against them.
(f) Those engaged in other steps of the economic process have not
been dep~rived of the right to be heard prior to approvfll of said
Supp~lementary Code.
F~Eor these reas~on-s, therefore, I have app~"'roed this Supplementary
He[ran S. Jo~-Nson,
Adm~~ inidstrator.
JUNIE 25, 1034.

Pur~suant to the provisions of Article IIC of the Code of Fair C~om-
petition for t~he Automnotive Par~ts aInd Equ~ipmlent Manufcturntingin
Industry, duly approved~ by the President on November 8, 193*3, the
following p~rovisionls covering fair trade practices and the admzin-
istrantion th~er~eo.f for the A~utom~obile Hot W7ater Heater Mfanufac-
turling Prodfuct Group of th~e .Accessories Division of thle Automotive
Parts and Equipment Manufacturing Industry which has been or~gan-
ized as al e n adinistenative unit of the Aiutomnlot ive Par~ts and Equip
menrt Mannulfacturingl Industry are hereby established as the stand
yards of Fair Competition of said Product Group and shall be
binding upon every! mnember thereof.
The term Product Group "' as used herein is defined to mean the
production and/or mnanufacture of autosmobile hot water heaters
aund-/or their comnponenlt parts for o~riginal equipment or necetssor~ies
on motor vehlicle-; or any other vehicle, exc~ept for street cars and
railway cars.
The term "' Memllber "' or "L MNember of the Product Group as used
herein includes~, but without limitation, any individual, partnership,
asscciation, cor~porlntionl or other form of ent.erpr1ise~ engaged~ in the
prodlutionl and/or malnufactur~e of the products of the Product
Group either a~s n emp~loyer or on his or its own ie'half.
The term Institute as uued 'herein is defined to mean the AGuto-
mobile Hot Wa';ter Heater Institulte, a trade association at p~resent
having its he~crladquarter office in Clevelandl, Ohio, in which associa-
tion no inequitab~le restrictions are placed uponi membership,.
The te~rm "' Basic Code as used hlerein, is defined to mean the
Code of Fair Competition for the Automotivre Par~ts and Eqyuipment
Mlalllnufuturngr Indiust~ry, as approved by thie President on. Novemer
8, 1933.
Tlhe te~rmn Co~de Author~it~y as usedi herein. is defin~ed- to mlean
the Code Au~tho~rity) designatedl in thle Code of 1F'air Competition for
the Aul~~7tiomotiv Par~ts and Equip~ment Manufacturing IEndustry.
(1) (a) Th~e Executive Committee of the Institute shall consti-
tute thle Administrative Committe~e to assist the Code ~Authority and
the Admninistrantor in the administration of the fair trade practice
provisions hereinafter set forth and the provisions of the Basic Code,
to wrhi~ch thee fair trade practices are a supplement.. One additional
member miay in the discretion of the Administrator be added to
represent no~n-mn~lember of the Institute who assent to and comply

with this supplement, suchE ad~it~ionall members to be selected by such
non-memnbers of the In~stitute by3 a fair method approved by the
Admnli ni st Ir t0or
(b~) In addlitionl to muembershipi l as above provided, there may be
one additional m~emiber. without vote, to be appointed by t~he Admin-
ist~rator, to serv\e without csxpense to the Industry for such term as
he may~ spjecrify.
(2) Alemerslt l of this pr,~oduct, group ~shll be entit~led to participate
in and sha-re: the becnefits of the activities of the Adlministrative Com-
mittee and to part'icipate' in th~e selection of the members thereof as
hereinabove et forth, by a~scenting to anld complying w~Tithl the reqluire-
ments ~ ~ ofteBai oe and this supplement, and sustammig their
reasonable share of the expcn~ss of the administration of this sutpple-
mnent. Such reasonabnle~ s~hassre of su~cht expenses shal~l be determined
by the Administr~ative Coml-mittee1, subject. to r\e~vi by the Code
Author~ityr and by the Adm~~inistrtrator on t~he basis of volume of
business and/"or sulch other factors as may be deemed~ equitable.
(;3) (a) Thle Administrativee Comlmittee shall, subject to the diis-
approv'al of the CodelP Authority and- thle Admmlristrator, have the
powrcl to adopt by-laws and rules and regulations for its procedure
and to obtain from. membersil~ directly or through an imlpartial
agrenlCy, such~l information and reports as are reqiuired~ for, thle admlin-
istration and enlfol~~r~cemnt. of this supplemnllt ; to cooperate wFith the
Adlministrattor~ in regulating~ the uIse of any N.R.A. insignlia, to h~ear
and adjust comlarllinlts,~ to iniitinte, consider and recommends to the
Code Authrit~y for tr~ansmitt al to the Admzinistrat~or further fair
trade practice provisions to govern the mnltembers of this Product
Group; and to discharlge the other poweFrs and duties provided in
this suplemecntnt.
(b) If the Ashrninistra~tor shall determine that any action of a code
authority or any. nagncy~ thereof may be unfair or unju~st or contranry
to the public iiter~est, thie Admtlinistra~tor may require that such action
be suspended to afford an oppor~tunityy for investigation of the merits
of such action and further consideration by such code authority or
agency.13end~ing final action wh-ich shlnl not be effective unless t~he
Admninist~rator approves" or unless he shanll fail to dlisapprove after
thirty dlays' notice: to him of intention to proceedi w\ith uchl31 acit~ion
in its o~igiinal or mlodlifiedl form.
(c) Each tlradle or indlustrial association dirlectly or indiirectly
pa~t Ic pa t~ing in th~e selection or activities of the Admnlin~listral~t ive Coml-
mittee shall (1) impose no in~equitable restrjc~t~ions on m~emblership,
and 52) submit to the Admini trator true copies of its articles of
association, by-la~ws, regulations, and any amnendmnents wvhen made
thereto, together with such other information as to membership,
organization, and activities as thfe Admninistratou r mlay deemi neces-
sary) to efccthetnto the purposes of th-e Act.
(~d) In orderly that there Acdministrative Comlmittece shall at all times
bet truly reprlesentativle of the Product Group and in other respects
comply w~ith thre provisions of the Ac~t, the Admiinistrator may pre-
scribe such hearings as he may1 deem proper 4 and thlereafter if he
shall find that the Ad~ministrativet Committee is not truly repre-
sentative oar does not in. other respects comply with the provisions
>f th~e Act, may require an a~pp~opr~iate. modification in thle method
of sbetfion\ of tjhe A~dministrative Committee.

(4) All members of this Product Group shall be boundc by the
provisions of t~he Basic Code~. F~or this purpose, all provisions of
the Basic Code are hereby declared to be a part of thiis supplement.
In case of any conflict b~etween the pr'ovlsions of this supplement
a~nd the provisions of the Ba~sic Code, the provisions~ of the latter
shall govern.
(5) The Admninistraiveiv Colnunittee shall cause to be formnulated
accontig mt~hds nd rincip~les of cost fin~ilngr and,'or estimat-
acuxg in caabe of se byi~ a ll eber~s of thle Prodluct Gr~oup. After
such methods andi pr1incip~les hav\e been flrmlula ted andl approved by
the Administrator, full details concerningi themn shanll be mad~e avail-
able to all mnembers.. Thereafter all melnib~ers shall determine anid/or
estimate costs inl necorda~tnce with sulch mnethodas and pr'inciples.

In addition to the pr~ov~isions of Section C of Arltic~le VI of t~he
Basic Code, th~e following decc~-~ribjed acts schall conlstitutee unfair
practices :
(1) Selling~ Below Coist.--(a) To sell the Ipl~rouc~ts of this .Product
Group at prices below co~st, determnined( in the mainneri providled for in
Article III, panrangen~1 ph of this supplement.
(b) Nothingr in this supplementtn shall preve\nt a miemiber1 from
selling at b~elow co t as comnputed in accordannce with the p~rovisions
of Articrle III, paragraphh 5 hiereof, providing that it is necessary
to do so to meett a competitive price.
(c) WVhen thie A-dmninistrative Comm~nittee dettellllrmine thant an emer-
gelicy exists~ in this P1rodu~ct G~roupl and that the cause t~her~eof is
destructive price-cutting such as to render ineffeitctivee or seriously
endanger the maintenance of th~e provisions of the Basic Code and/or
this supplement, the A~dministr~ative Committee may5 ciau~se to be de-
termiined t.he lowe-st reasonable cost of anly of the p~rodlucts of this
Product Group, such determination to be subject to such notice and
hearing as the Administrantor mayS requiire. The Admiinistrator may
approve, disapprove, or modify the determination. Thereafter, duir-
ing the period of the emer~gency, it shall be an unfair tradle practice
for any member of the Produ~ct Group to sell or offer to sell any
products of the Product Grouip for which the lowest r~easonable cost
has been determined at sucht prices or upon such sterns or conditions
of sale that the buyer will, pay l"ss therefore than the lowest reason-
able cost of such products.
WVheni it appears that conditions have changed thle Administrative
Commiittee, upon its owrn initiative or upon the request of any
interested party, shall cause t~he dletermnination to be reviewed.
(2) Conmmrcal Brizberl.--To give or' permit to be given, or offer
to give, directly or indirectly, money or anything of value, t any
purchlaser or prospective purchaser or to any officer, employee, agent,
or representative of such purchaser for the purpose of influencing
their employers or principals in th~e purchase of any commodityr,
with or without the knowledge of their employers or principals.
TPhis paragraph shall not be construed to prohibit free and general
distribution of articles commonly used for adv-ertising except insofer
as such articles are actually used for commercial bribe~ry as herein
defi ned.

(3) Inarc~curatf Larbeling.--To list, brand, manrk or pack any prod-
ucts of the Pr'loduct Glroup in any manner which is intended to or
does dleceive or mislead purchasers in some material particular or
the failure to brandt sulch products for the p~urpose or wvit.h the effect
of mnisleadling or dleceiving purchiaser~s in some material particular
with respecIt. to sucrh producrts including but. without limitation their
brand, gradnte, quality, quantity, origin, size, substance, character,
nature, ~inish1, mauterial content. or grprepration).
(4) /Imitation of TI~rade-MaVrks:~.- To imitate or copy a comnpeti-
tor's trade-mar~k, marking, trade name, or exclusive andi established
design which identifies the maker or vendor of the product, with the
purpose or effect of misleading or dleceiving any purchaser or
prospect~ive purlchlaser.
(5) In!cculratef Advrlrt~,iring.-To publish adver-tising (whether
prinited, randior, display,. or of any other naturee, which is miisleading
or inacc-urate in any maiter~ial particular, or to misrepresent in any
way any pr~oduct. includingg but. wTit~hout limiitation its use, trade-
mark, gIrade. quality, quantlity', origin, size, substance, character?
nature, finish, material, content, or preparation) or credlit terms,
values, policies, services or the nature or form of the business
(6 rirGuarante el.--Too gu~1arante Product. Group products
against advaince or decline in price.
(7)j G~unalran.--T o grive anyS guaranty or warranty on aniy prod-
uct of thle Prodluct Gr~oup> xceplt against, defectsr in workmalnship
or material.
(8) Reitur~n. of Pr~od-ucts.--The AIdmlinistrative Comm~littee may
formulate rules anid regulations to g-overn the return of any products
of the Prcduct GrIoup> for credit or ech~clange, andl~ rtommnllrl d the
same to Clode Auth~ority~ and thet Ad~minist~tcrat for alpproval. Up~on
approval by th~e Codle ALuthorrity andt thle Admlninistra~tor, after such1
heariing~ as thle Ad~iminis~tratocr may\ prescribed, such rules andt r~egula-
tions sh-all beccomec bidincirg as a part of this suppllement
(9) Co/iiln iiynnwts ---To sh~ip stocks o~f the pirodlucts of this Pr~odluct
Group to dlistributors, conltrnet~ors. ma~nufactur~ers' agents, and/or
others on,1 r.o.nsignmentI~ or unde~r1 thet FloaItin orI Ledgerc~
Balslance ~lanr. Alli existingI agreement s r~egarding such shipments
shall be termllinatdc~ w'ithlin 60 dayvs from11 thel date o~f apprloval of th~is
supplemen-rt, wiithi thet exsception of existing contracts wThich. by their
terms, rilicannt h~e tcermiiinated by thant dante, subject to thet condition
th~at cop~ies of Iuch conrtrnlcts shlall b~e filed w-ith the Admninistrativee
Comni t tee.
If airny aplientfionl of this Sefction shouJlld wFlork any' unjust hard-
ship upo'n any~ member15.1 of thC Pr'odIC't G~roulp o' upon1 any~ cuIstomer,
such membellrL orI enlta~inerl Iiinny appIeal to th~e Admiinistrator, who
shall have power" to graint sulch relief as justice mayv Ireqiriie.
(10) Re la(rc;cing Compe,~t~f~itos ,StocX.--To liquida~te, purlchase, or
accept a cmnpetitor's' prod~uct. from anyi buyer.
(11) (Interferncel~ w~ith Airinothr's ionrtracts.--To indluce or at.-
tempt to induce th~e brleach of an1 existing contract between a com-
petitor and his customers or source of supplyl; or to interfere with
or obstruct. the per~formalnc~ii e of such~1 co-ntranctual duties or servires.
(12) Cot)crdon.-- To r~equir~e that thec pu~c~hase of any goods be a
prerequisite to the pu~c~hase of any3 Prod~uc~t Group goods.

(18) Di~scriminnaiona.-To prevent unfair mnethodls of competition
the Administ~rat~ive Committee shall recommend to th~e Code Author-
ity and to the Admninistrator a fair and equitable classification of
customers based upon service r~endlered. Upon approval by the Code
Authority and the Administrator, after such hearing as the Admin-
istrattor may prescribe, such classification shall be adlhered to by all
members of the Product Group. No memlber of the Product Group
shaUl sell his products to any customer at net realized prices lower
than are offered to all other customers of thle same classification for
the same quantity, grade, quality, or style, prlovided, however,: that
due allowanlce miay be mnade for dit~erenlce- in transp~or-tation costs.
If any applica-tion of the foregoing c~lassificat~ions should wTork
unjust hzardslhip upon any member of the Pro~dulct. G~roupx or any cu~s-
tomer, such of the Produict G;roup, or customerir mayS appeal
to the Admninistrative C'ommittee andl -or ther Code Author~ity,, which
shall havre p~ow-er to mlake or require sulch~ rec~lassific~ation as justi-ce,
(14) F~lilg of Price~ LiYts..-Sinc. e it hals bee~n the general recog-
nized practice of t~he Prod-uct G~roupl to~ sell its products on the ba~si
of printed nect price lists, or price lists with cliscounllt sheets andi fixedl
terms of payment w~ihich are distributed to th~e trade, each member
shall file with t~he Administrative CIomminttee a net price list; or a
price list and discount sheet as the case may he, indiv-~idually pre-
pared by him7, showF-ingl his current nletb prce r prie list andl dis-
counts, as the case may be, andc terms~~ of paymnt to the respective
classes of customllers established pursunnt to pararaphnl~ (13) of this
Article IVT, andl the Ad~ministrastive Cfomimittee shall immediately
send copies thereof to all other me~mbers. The Administrative Com-
mittee shall likewise make such filed prices nrailable for inspection
by customers or p>rospect~ive customers of the classification or cla`ssi-
fications attfected. Revised scheduled~ mnay be tiled fromt time to time
thereafter with thle Admlinistrative Colnmnittee by any member, to
become effective upon a. date sp-ecified by suchi members, wFhich date
shall be 10 days after the filing of such revisedl prices with the
Administrative Comnmittee and copie.; thereof with1 notice of the
effective dlate specifiedt shall be immediately ent to all other members
who thereupon may file, if they so desire, revisions of their price lists
and,''or discount sheets, whlich, if filed previous to such effective late,
me.yr take effect upon t~he date wrhen the revised price list or discount
sheet first filed shall go into effect. The Admin istra tive Committee
shall likewise makre such revised filed prices available for inspection
for customers or prospe~ctivre customers of the classification or classi-
fications affected.
No member shall sell or offer to sell any product at prices lowfer
or discounts greater or on monre favorable terms of payment than
the approvedl schedule of such member which is in effect and on file
with the Aldminisctrative Committee as above provided.l
(15,) Vlolume Allownnce.--No member of the Product Group shaUl
exted t anycusomeranyrebate or bonus based upon the total
volume of pu~rchases of such utoe vrapro ftmecp
as follows:
See paragraph 2 of order approving this Code.

Each member of the Product Group shall report to the Adminis-
tr~ative Committee a complete schedule of rebates or bonuses for vol-
ume allowedl by him or it dlurinlg the year 1933. From such reports
the Admllinistrative Commlittee shanll select the highest rebate and
bonuls rates and terms w~hic~h repr~esent customalry selling practice
in the Product Group in said year, andl shall prepare a2 composite
schedule of rebaltes~ and bonulses which~ embodies saidl selected rebate
and bonus rates and terms. Sa~id composite schedule shall be re-
ported to the Code Author~ity andi the Administrator together writh
true copies of the individlual schedules from which it was dlerived.
After approval thereof by thle Cod.r~e Auth~ority andi the Admninis-
trator, no member of the Product G~roup shall extend to any cus-
tomers any rebate or bonus~ at a ra~t~e higher or1 on terms more favor-
able than are provided in said comnposiite schedule.
(16) Branch 'rtand WMart;/lcnse. cStockXs.--To makte sales frocm Ware-
hounse stocks other than at thle m~embers ownn factory unless t.hle fol-
lowing conditions prevail:
(a) Memllber~s shall make 7 r~eaonaible services charge for services
rendered, bansedr on th~e lowest reasonable cost. of mlemnbers maintain-
ing such Branch or Wareholcuse stockls, t~he determination of su~ch
charge to be subject to the approval \ l o-f t.he Admlinistra~tor.. No such
charge need be made on sales fr~om Bra~nch or W~ar~ehousee stocks lo-
catedl in the same city or tlrad~ing area~ asi a complI-etitor factor~.
(b) In the case! of any ale o~r shipmencn t from~l stocks warehousedl
with a customer, the member,1 in b~illing~ forl such sales and makling
collectioons th~ereon, sha~ll noct empllov Ith serv\ice~s or1 facilities of said
customers~ withn whom sulch st~cks~ ar~e walreh-us~ed.
(17) Fn;ilkt Alliowanice.--Thet Administra.~tivc C`onun'ritttee shall
proceed inunedr~ciately to prepareni' a schedule of frigh~lt allowanncess and
submlit same for the approval ojf thle (.cod~e A~uth~ority and1 thet Admlin-
istrator within ninety days~ fl~rom th l-lc~ttctivc dlate. Up~on slch ap-
proval of such. schedule noJ m~embelr;. 1 shall make1~ anyl frecigh~t allowanlces
to cusY~lltomer in exc('c of theC prov,\ision oie(f csuch1 siched~ulc
If any applicattion of this paragraph~1~ .shourllld w-ork an!- unju~st hardl-
ship upon any member of thc- Produ~l~ct Gr1oup> or upo~n aIny ~~icustomer
such or customer may~! appeat~l to, thle Codcl~ A~tluthoityl and
the Aldmlinistrator, w~ho sha~1 ll hae power~l to granllt su~ch. relief as~
jul-ttcee may req~uire.
(18) ExporC.--The proviciolns of thiis supplemler nt~ w'ith regardl~ to
prices, discounts, dleluctions, anllowancer~ tstln, extas orinet~ods alnd,'or
terrms of sale apply to dirtc~t expc.r~t sales~ and! to~ sa;lers inl coursille o~f
export (i.e., sales destined ultimlately. for~i extrlt), and~ toi sales; of
materials used in the mlanulfa~ctur~c o-f p~'roducrts for~l export, s~ep~t as
may otherwise be provided by thle AdministraL tivet (com~mitte, subject
to the approval of the Admri'nist ra;tor..

An-r'Icts. \T GENERAL

(1) No provision of thii -upplemcinnt shall be so applied as to- per-
mit monopolies or moznopcli tic- pra:ctices, or to eliminated, oppress,
or diserinmnate against small enrterprlises..
.(2) Such of the prov~isiolns of th~isi supp~lleme nt as ar~e not r~equired2
to be includcedl herein by thle Act, may, with the alpprov~al of the
Administrator, be moditiedc or elimiinated on the proposal by the

Product Group or any member therleof if it appearl that the public
needs are niot beingr served thereby,~ and~ as~ changes in circumstances
or experience may indicate.
(3) It is contemnpinte dl that fromri timie to, timie supplem~lc.lentar y pro-
visions to this suppliiemlent orsi mlodificatioini there~of will be sub-
mitted by the Admninistrantivei (L'nllnmittcee thrioughl the Code Au-
thority for approvali to prlevenlt unfair. compet~tition in price and other
unfair and destrulctive e compe~ctitive prne~ctices and~ to e~ffectuate thre
purposes of the A~ct. Upon~1 ;Ipprova\'l by! thc Adm.l~inistrato~r after
such~ notice andc hearing as~ her may1? prLescribe,' suIch supplemenetary
provisions or mnodifientions shlnl become bindling as n part of this
(4) As: required by~ S~c~tionl 10) (b) of Tritle I o~f the Acet, the fol-
low~ing pov-ision is c-onltainedl in this suppllemient:: Thle President
may from time to timle ecacel o:r m~od~ify any! or~del nllrc, prol, license,
rule, or regulation issuedl u~ndler said- Title.
(5) No member~1 of this Prodcuct Grlouphll> b1n1 Ie held~ to have con-
s~ented to any m~odliifka~tion o f thlis suppl~r emen orI to any! provision or
interpretationl of the Naitio~nal Induistirial Recoverly Act if declined
unconstitutional by,! the Suplrcneme Coiur~t of th~e Unitedl States.
(6) Violation by! aIny membe r of this Produlct G~roup of anly pro-
vision of this suppllcement. is an act of unfair compe-~tition,, and the
offender shall be s~ubject to the p~enalties imp~osedl by, the ~Act.
(7) The termn Effective Date as used herein means the 10th
day after this supp~lemient shaoll have been approve d by the President.
Approvedl Coale No. 103-Su~pplement No. 1.
Regristry No. 141Mi-33.

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