Supplementary code of fair competition for the pulp and paper machinery industry (a division of the machinery and allied...

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Material Information

Title:
Supplementary code of fair competition for the pulp and paper machinery industry (a division of the machinery and allied products industry) as approved on August 11, 1934
Portion of title:
Pulp and paper machinery industry
Physical Description:
10 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:
Papermaking machinery industry -- United States   ( lcsh )
Wood-pulp industry -- Equipment and supplies -- United States   ( 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. 1399-67."
General Note:
"Approved Code No. 347--Supplement No. 42."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004939824
oclc - 652478103
System ID:
AA00006823:00001

Full Text
_I _~~I IYIL__IIII_ICYIICI I**


__


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


Approved Code No. 347--Suplplement No. 42


Registry No. 1399-467


NATIONAL RECOVERY ADMINISTRATION




SUPPLE ME NTARY

CODE OF FAIR COMPETITION

FOR THE


PULP AND PAPER

MACHINERY INDUSTRY

(A Division of the Machinery and Allied Products Industry)


AS APPROVED ON AUGUST 11, 1934


~'-L~ITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934L
























This publication is for sale by the Superinte~ndenlt of Documents, Government
Printing office, Washingrton. D.C., anrd b~y district offices of thle B~ureau of
For~eig and Domestic Commerce.
DISTRICT OFFICES OF TH DEPARTMENT OF COMIMERCE
Atlanta, Ga.: 504 Post Office Duilding.
Bir~ming~ham, Ala.: 257 F~ederal Building.
B~osto~n, Ma~ss.: 1801~ C'ustomo~use~.
Buffulo,, N.Y.: Chamuber of Coimmerce Building.
C'har~lesto n, S.C.: Chamwber oif Commer~cce Buibiling.
Chicalgo, Ill.: Suit-e 17;06, 2(11 Northl We'lls Street.
Cleve~land, Ohio: Chamber~ of Comnmercer.
Dallas, Tex.: Chiamber of Cormme~rce lBuilding.
D~etroit. Mlich.: 801 F~irst N'ational Bank Building.
H~ouston, Tex.: Chamnuber of Courncrcer Duibrling.
Ind~innnpo~cli~s, Ind.: Chambe~r of Clnmm'erc Building.
Jack-conville, Fla.: Chambell?(r of Cjlmmerlt'c' B~uildling.
Kansu~: s City, Mlo.: 1028 Baltimore~c Ave~nue.
Los Algeltes, Ca~lilf.: 1163 Soulth~ Droadway.ii J
Lo~uivrille, Ky.: 408 Federal 1:uildinlg.
M~emphis, Tenn.: 229 F~ederal Build~ing.
M!ilnneapolis, Mlinn.: 213 Federal Buildling.r
New\\ Orleans, La. : Room 223-A, Custombol use.
New~ Yorkr, N.Y.: 73-1 Clustombhouse.
N~orfolk, Va.: 406 East Plume Street.
Phriladelp~~hin, Pa.: 42"2 Commercial Trust Buiilding.
Pittsburabh. P~a.: Chalmber of C'ommlerre Iuib~ling.
Portlandl. Oreg.: 215 New Post Office Builhling.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Cal~if.: 310 Custombouse.
Se~;ttle, Wash.: SO19 Federal Office Building.













Approved Code No. 3471-Supplement No. 42


SUPPLEMENTARY CODE OF FAIR~ COMIPLETITION
FOR THE

PULP AND PAPER MACHINERY INDUSTRY

As Approved on August 11, 1L934


ORDER

APPROVING S~UPPLEMENTARY CODE OF PAIR COMPETITION FOR THE PULe
ANhD PAPER RIACHINERY INDUSTRY

A DIVISION OF THE MCACHIN'ERY AND ALIED) PRODUCTS INDUSTRY'

An application hanving been dully made pursuant to and in full
compliance with the provisions of Title I of the National Indus-
trial Recovery Act, approved June 16, 1t933, for approval of a
Supplemental Code of Fair C~ompetition for the Pulp and Paper
Machinery Subdlivision of Ma~chinery and Allied Products Industry,
andi hearing havingi been held thereon and the annexed report on
said Sulpplemental Code, containing findings with respect thereto,
having been madle andi directed to the President:
NOW~, THEREFORE, on behalf of the President of thle United
States, I. Hulgh S. Johnson, Admuinistrator for Industrial. Recovery,
pursulant to authority vested in me by Exrecutive Orders of the
President, includtingr Executive Order No. 6543-A, dated De~cemnber
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Supplementali Code complies
ini all respects w7ithn the pertinent provisions and will promote the
policy and purposes of said Title of said Act; and do hereby order
that said Supplemnental Code of Fair Competition be and it is
hereby a~pprove~d.
HUGH S. Jonxrsox',
Admlinistrator for Industrial Recovery.
Approval recommended :
BARrroN W. MURRA~Y,
Div~isionz Admn.z'zztlt~rat
VTASHINGKTON, D.C.,
AucguAst ~11, _1934.
7i90120-1 0441-60---34 (1)












REPORT TO THE-E PRfESIDENT


The ]PREsIDENT,
The W~hite Hous~e.
SIR: This is a report on t~he Supplemt!entanl Codle of Fair Compet-
titionn for the Pulp and Pa~er M~achlinery Subdlivisionl of 1\lachinery
and Alliedl Products IndustryT, a public: hen'nng onl whichl wa~s held
in Wiiashington, D.C., on Masy 10, 19:34. The hea~rmgf wavs con-
daictedl in fuill accordan~lce with the pr~ovisions of Title I of the
National Indlrustriall Recovery Ahct.
GENERAL; STATMENT

The Pulfp and Paper Malch~inelry Slbd~ivision, beings truly re pre-
sentative of the mnunrlfuerturers of the products decfinedl in Article II
of the Supplemental Codle, has elected to formlulate and~ submlit a
Supp~llemelntal Code of Fair Clomp~etition as pr~ovid~edl in the second
paragraph of Article I in th7e Code of Fair C'ompetition for the
Mnc~hinery and Allied Products Industry, ap~provedt by you on thle
seventeenth day of Ma r~ch, 1934.
Thle Subtlivisioin includes the manufacture for sale of ma~chinery
and equipment used directly in thle pr1oc~essing of p-ulp alndl paper
in pulp mills, paper mills, and pa3per co~nverting and pr~ocessing
establli.-hmen s and/or speciallyv dlesined parts the~refor, except
paper machines, brlelatr and jordansl andt any. other machinery anid
equipment and/or parts thereof proucedcit underr thle provisions of
anly other code of fair competition or any mother subdivisions~ of this
]Basic Codelt hereltuoore approvee, a~nd is intenlced to include all
those engagedc~c in such mlaniufac~tu re for sale.

ECONOMY JIC EFFECT

It is estimanted that this Sub~liision in 1920 emp~loyed approxi-
miately 1,250 persons. TIhis estimlate is based o~n lata c~ontainedl in
National Recovery Administration questionnaires.
According to a summary of qulestionmrlires recturnedl by fifteen
members of the Subdivrision, factory emlployment~n d-eclined 60j.4
perr cent from 1929 to the first quarter of 1933~. Aln inlcrease in
employment of 11.4 per cent wcpas Iloted. from JTunet. 1933 to Noemn-
ber, 1933. Emplloyment in Novembellrr, 1,3:3 was~1 apprloximatlyte 35
per' cent below the 1929 level.
Annual sales~ of the Subdivision, basedct on Nantional Recovery A~d-
mmriistraltion qUestwnnuare~il' returns, fourteen conc~ernls rep~or~tingS dc-
c~lined~l from $:,'743,000 in 1929 to $2.-2.00i 93,o 0 e cn.
Approxsimalte~ly G4.0 perl cenlt of the workrc~s w~er~e emp~c,cl yed ore
than 40 hours pe~r weekr duringl a represen'i~ltative' weeCk of June Ct
The ave~lraget work-weeki d~c~linlel from 47.5 hourss in Junle 1929 to
43.7 hours in June 1!,33, and 38.6 h~ours in NJovemberl, 1933.








M~an-hours per week declined 45.3 per cent from Julne, 1929 to
November, 1933. Th~e decline from June 19:33 to November 1933
was 1.6 per cent. Due to t~he fact that the Subdivision in November
1933 was operating on an average of 38.6 hours per week, little
mecrease mn employment mlay be expected as a result, of the adoption
of a 40-hour week.
App'roximately 31.5 per cent of the factory workers employed in
June, 1933 were receirmg~r less than 40 cents per hour; 28.3 per cent
were r~eceiving less than 38 cents per hour; 25.1 per cent were
receiving less than 36 cents per hour; and 16.0 per cent, were receiv-
mng less than 32 cents per hour. Based on the distribution of
hourly rates for June, 1933 the adoption of the miinimnum wage
rates provided by the code will effect a concomitant increase in total
payrolls of approximately 6.0 per cent, assuming upw~ardc adjust-
ment in the brackets below the 406-cent mlinimuml only and no change
inr man-hlour :requiremenlts.
nEIs1CEn oF SUPPLEM\ENTA. L CODE

Article I states the purpose of the Supplemental Code.
~Article II accurately defines specific terms applicable to the Sub-
division as used in this Supplemelntal Code.
Article III provides for the adoption of the employment p~rovi-
sions of the Code of F'air Comnpetit~ion for the Machinery and
Alllied Products Industry, as approved by you, and as from t.imle to
time amended.
Article IV provides fior the adoption of Artiles II[, VI and VIII
of thne Code of Fair Competition for the Mlachinlery and Allied
Products Industry.,
Article V provides for the establishment of a Codie Authority
and defines its powers and duties.
Article VrI provides for an accounting system and methods of
cost finding undi/or estimating.
Article VII provides that no products of the Subdivision shall be
sold or offered for sale belor a, reasonable cost when the Code
Au~~thority determines that an emergency exists.
Article VI[II sets forth trade practices for the SCubdlivision.
Article IX states that no provisionI of this Supplemental Codle
relating to pricing and marketing shall apply to export sales.
Article X provides that this Supp~lemental Code and all the
p7rovisions thereof are expressly made subject to the right of thle
President, in necordance with Subsection (b) of Sec~tion1 10 of t~he
Alct, from timle to t~ime. to cancel or modify anyr order, approval,
license, rule or regulation issued under said Act. Provision is also
mande that mnodificationis miay be submitted by the Code Authority.
Article XLI provides for the wcit~hdrawarl of the Subdivision from
the jur~isdliction of the Basic Code ~Authnority in accordance with
the p~rovisions in this Article govermngn such withdrawal.
Article ~XII. No provision of this Sup~plemental Code shall be
so applied as to permit monopolies, or monopolistic practices, or to
eliminate, oppress, or discriminate against small enterprises.
Article X~III states the effective, date of this Supplem~ental Code.








FINDINGS
The Assistant Deputy Administrator in his final report to me on
said Supplemiental Code having found as herein set forth and on
the basis of all the proceedings in this matter:
I find that:
(a) Said Supplemental Code is wrell designed to promote the poli-
cies and purposes of Title I of thle Nationlal Industrial Recovery
A~ct, includling~ remnoval2 of o~bstructions to the free flowF of interstate
andr foreign commerce whiich tend to diminish the amount thereof
and!~ will provide for the greneranl welfare byr promnoting the orgaani-
zation of industry for the purpose of coope~rat~ive action~ among the
trade glllnroupsl bynducngand miuaintining united action of labor
and anagmen, uner aequte governmiental sanctions and super-
vision, by elimiinating unfair competitive practices, by promloting the
fullst .possible utilizatio-n of the pr1esent p'rodluct.ive capacity of
indutriet~ls, by avoiding undue restrxetion of p~roluc~tion (exc~ept as
may be temporar'~'ily required~), by increa~sing th~e consumption of
industrial and agricultural prouc~llts through inlcrlensing purchasing
power, by reucrling and relievinlg ulrnemploymnent, by imlproving
stawlards~c of labor, and byI otherwise rehabilitatingr industry.
(b) Said Subdivision normally employ3s nlot. mlore than 50,000
employees; and is not classified by me as a maljor ind~ustry..
(c) The Supplemnenltal Code as approve d c~omplies~ in all respects
with, the pertinent provisions of said Title of said Act, inlcludlinga
without limitation Subsection (a) of Sec-tion 3, Sulbsectiojn (a) of
Section 7, and Subsectionl (b) of Serction 10j thereof; andi that the
appllicalnt~ association i~s an industrial asso~ciationl truly reprlesentative
of thne aforesaid Subdivision; and that said asjsociatio~n imnpos~es no
inequitable restrictions on adm~ission~ to mlemnberlship therein.
(dl) The Supplemental Code is not deisignetd to a ndl will niot. per-
mit monopolies or monopolistic practices.
(e) The Supplemental Code is not dlesigrned to and will not elim-
ina~te or opp~ress small enterprises and will not operate to discr~imi-
nate against them.
(f) Those eiingged~ in other steps of the economic process have
not been depr~ived~ of the righ-t to be heard prior to approval of said
Supple~mental Code.
For these reasons, therefore, I[ have approved this Supplemlenltal
Code.
Rtespectfulliy,
HThGE S. JoHNSOn,
Adminiilstratcor.
AUGUnST 11, 1_934.













SUCPPLEMIENTARY CODE OF FAIR COMIPETITION FOR
THE PULP AND PAPER 1\fACHINERY INDUSTRY

A DIVISION OF THE M~ACHINERY AND ALLIED PRODUCTS INDUSTRY

ARTICLE I--PORPOSES3

To effectuate the policy of Title I of t~he KNtional Inldilstrial Ri2e-
covery Act, thle followring p~rov'isjions are established~ as a Supple-
mental Code of Fair Competition for the Pulp and Paper Mlachinery
Subdivisioni of the M~achinery and Allied Prodlucts Industry, and
together with t~he Code of FaEir Comnpetition for the Miachinery and
Allied Products Industry, shall be the. standard of fair competition
for this Subdivision, and shall be binding on everyS emp~loyer therein.

ARTICLE II-DEFINITIONS

"Applicant means the Pulp and Paper 1\lachinery Association, a
trade organization, all members of which are en~gagred in the manu-
facture for sale of the products of the Pulp and Paper Subdivision
of the M~achinery and Allied Products Indlustry.
"' Indlustryv rileans the Manchinery and Allied Products Industry,
as defined in its Code of Fair C'ompetition as approved by the Pres-
ident, and as such definition may from time to time be amended.
"' SubliviSion means th~e Puilp andl Paper Rlachinery Subdivision
of the M~achiner~y and Allied Prod-ucts Industry as defined and set
forth in Article II of the Code of Fair Comlpetition for the
Mlachinery and Allied Prodlucts Industry as folllows:
"i Pulp and~ Paper M~ach~inery Subdivis~ion means the mianufac-
ture for sale of miachineilry andl equipment used directly in the pro-
cessinig of puilp and paper in pulp, mills, paper miills, and paper
converting andi processing establishments andi/or specially designed
parts therefore. except paper machines, beaters and jordians and
any other miachinery and~ equipment and.'or parts thereof produced
under the provisions of a.ny other code of fair comnpetitionl or any
other surbdlivision of this Basic Codle heretofore approved, and is
intended to include all those enga~gedl in such manufacture for sale.
"' Code "! means the Code of Fair Competition for thle M~achinery
and Allied Products Industry as approved by the President, Manrch
17, 1034, and as fr~om time to t~ime amendled.
"' PersonI meltans a7 natural person, a partnership? a corporation,
an association, a trust, a trustee, a trustee in bankrupteyr, a receiver,
or other entity.
"L Emlployer "' means any person engaged in this Subdivision either
on his owfn behalf or as an employer of labor.
"L Employee "! means anyone wvho is emnployed in the Subdivision
by any such employer.








The ~Act' means Title I of the NPational Industrial Recovery
Act.
'" The Presiident "' means the Presidlent of the United States.
"' The Adm~in~is~trator ") means the Admiinistrator for Industrial
Recovery.
"' Basic Code Autho.rity' means the Codle Aut.hority for thle Man-
chinlery andc Allie~ Prod~ucts Indust~ry as constituted by the Code.
Code A~uthor~ity mearns the Cod~e Auth~ority; constitutedl for this
rSu~blivision as prlovided by the Codelt and by this Supiplemnental Code.
Gro'up Codet Aut~hority mieans thie C:ode Aluthority for any
group1 or products cl~Ssifica~tioni within this Subdlivision.
AR:TICLEI III-E31PLOYMNl.T Paov'ISIOKs

The following Articles of the Code~, viz: Article III, W'orking
Hou~lrs "; Article IV, Wa"ges "; andi Article V', "General Labor
Provisions ") are hereby made a pa~t. of this Suppilemental Codle, w7ithl
the same effect as if they w-ere wr~ittenI inlto this Supplellmenta l Code.
ARTICLE IV-AnLLorTroN or OTH-ER PRov.Lisioh~ or CO)DE

The following Art icles of the Code, viz : ArItircle II, "' Definit ions ";
'Article VI, "AdmInistration ", to the extenit that thiey shall be op-
p~licable to this Suppi~~llemetnt Code as suc~h or as it many hereafter
be administered as an autonomous Code; and Art;icle V'III,' Modli-
fientionlls and Term~inlation ", are hEr!eby ma1de a par"t of this Sup~ple-
mental Code with the same effect as if they wer~e writtenl into thiis
Supyplemental Code.
ARTICLE V-Am)~IxxIsl~T(N~x

(a) A Code Authority for thlis Subdivision is hereby conlstituted
to administer, sup~erv\ise and facilitante: the enlfo~c~ement~l of the Codes
and of this Sulpplemental Code in the m~anner and to the extent pro-
vided in the Code and in. this Suppclemental Codfe.
(b~ ) Dring a pecriodl not to exceed sixty (60) days followinrr the
effechrtive dajte and npndling the election othe pelnlrmannt bCode
Authority, the B3oard of Dilrectors of the ALpplicant shall constitute
a temporary Cod~e Authority.
(c) Thie applicant shaull, by written notice mailed to all employers
whose names the applicant has obtained after reasocnably: diligent
search, call a mleeting~r of the employrs to be held within sixty (60)
days after the effective date for the purpose of electing a permanent
Colte Authority, which shall consist of five (5) members, and for the
purpose of adtopting pr~cedurilllal rules and regulations for the olrgani-
zation and operation of the permanent Code Authority..
Any vacancy on the: Codie A~t~hority due to death, resignation, or
Irlwouse a, mrember thereof has ceased to be connecrted with the SCub-
division, shall be filled at a meetings of employers called by the Codle
Authority on at least ten days' notice by reisaiteredl mail sent to all
emlployers- in this Subdivision, and by a vote simnilar to thle vote by
which the retired mlember was originally selected.
The Admllinistraltor maiy, in his dliscretionl, appoint one additional
member (without vo~te and without expense to the Industry). The~








permanent Code Authority so elected and appointed shall ,super-
sedle the temnporaury C~ode Authority.
(d) Any employer shall be entitled to vote att the election of
the permanent C'odet Authorityr and at other meretingsr of employers
anld shar~e in the benefit.s of the ac~tivities of Code Authorityr and
may participate in anyl endteavors of Code Authority in the p~repar-
ation of anyr amendmenE~ts or revisions of, or additions or su~lpp"lements
to, thnis Supp~lemlenltal `code by paying or agreeing to p~ay, as andl
when assessed his proper pr~o rata share of the reta conablee cost of
admninister~ing this Supplemelrllntl Code as dletermineiid by Code
Authority.
(e) The mlemnberss of the Permalnent~l Codle Authority shall be
elected by a mlajority vote oif employers pre~sent. in per~son or byT ploxy..
Each emplloyer shatll have one voute. The eligibility requirements
for such vo~ting shall bec as provided in Sec~rtion (d) of this A~rticle V.
Thnis method of votingr anld the eligibility_ requirements therefl.r
shall also apply to all other mnatters, except for additions to, amend-
ments, reisio~ns, or supplements to this Supplemental Cfode, as
provided for by A~t~icle XY of this Supp~t~lemetal Code, and With-
drawazl, as providled forl b~y Article XLI of this 1Suppllemlental Code.
(f ) Emnployers in this Subdivision having; a common interest and
conunlon pr,1obirlems ma! be~ grouped by Code A~uthority for Admninis-
trative purposes. 'There ray~ be a Group Clode Authority approved
or appointedt by Codle Authority for each such group.
(gr) If formllal comlplaint is made to the Code Author~ity that
prov0\isions of this Suplplemlental Code have been violated by anly
empllloy\er, C'ode Authority, or the proper G~roup, Code Aulthor-ity
mlay to the extent emi~tted~ by t~he Act. enullse sucrh invesi~tiaton or
audit to b~e mnade as may be deemed necessary. If such investigation
is madnte by! Group C'ode Authority it shall report the result of such
in vest igationl or audlit to~ Code Authority for action.
(h) The Codle Authority may appoint a Trade Prnet~ice Comi-
mitttee which shanll mecet wilth the Trade Practice Committtees ap-
p~ointedl und~r sulch other Codes as mayc be related to the Subd~:ivision
for thle purpose of formu~lating fair ~trade pr~ntices to govern the
relationships b~et.ween productionn anmd distr~ibutiono employers under
this Supplemental Codrte and under such o~ther~s to the extent thatL
such fair tradie p~racticet s mnay be proposed to the Adicmin'istrator
as amendmnlentsi to this Supplemental Code and such other codes.
AnIcis V~I A CCOUNTING AND) COSTNG

The Code Aulthority shall cause to be formnulated an accounting
systeml and meltihodls of co-st finding and/or estimating capable o
use by aill employers of theg Subdlivisionl. After such, systeml and
mlethodls hav'e b~een formulated, full details conicerning tem shall
be made avanilable t6j all employers. Thereafter all employers shall
determine and~,. orl estimate costs in acc~ordante with the pr1incip~les of
such methods.

AnnTICEx VII--SELLING BELOW REASONABLE COST
SECnON 1. M~hen the Code A~uthority dlete~rmines that an emer-
gency exists in this Subdlivision and that the cause thereof is destrxic-








tive price-cutting such as to render ineffective or seriously endanger
t-he maintenance of the provisions of this Supplemiental Code, the
Code Authority may cause to be determined the lowest reasonable
cost of the products of this Subdivision, such determlination to be
subject. to such notice and hearing as the Administrator miay require.
The Administration may approve, disapprove, or miodLfyv the determi-
nation. Thereafter, during the period of the emnergency, it shall be
an unfair trade practice for any employer of the Subdivision to sell
or offer to sell any products of the Subdivision for which thle lowest
reasonable cost has been determinedc at such prices or upon such
terms or conditions of sale that the buyer w~ill pay less therefore thian
thle lowest reasonable cost of such products.
W~hen it appears that conditions have changed, the Code Author-
ity', upon its own initiative or upon, thec request of any interested
party, shall cause the determination to be reviewed.
SEcTION 2. The foregoing Section (1) shall not. apply to (a)
dropped~ lines, or (b) seconds, or (c) inventor~ies which must be con-
ver~ted into cash to meet emergency needs, all of which mnay be dis-
posed of by any employer at anly-price and on any sterns or
conditions, bjut only if such employer, not less than two weeks before
such proposed disposal, has filed w~sith Code Authorityv, a statemnent
in writing setting forth the facts of, and reasons for, such proposedc
disposal andl the price and terms and conditions of sale, and Code
Author~ity~ has not, (with the3 approval of the Ackninistr~ator), before
the termiinationi of such twBo week period, in writing, disapproved the
proposed disp~osal. Notice of such1 disposal, if not disaprovedrnl
shall be sent immnedia~tely to all emnployer~s manufacturing products
of equiv-alent. design, character, quality or specifications, who may
sell such p~rodu~cts at prices and on terms and conditions as favorable
as those stipulated in the proposed disposal, when meeting the coml-
~petition: of such proposed disposal.
SECTION 3. The foregoing Sect~ion (1) shall not apply to a sale
made in order to meet competition on products manufactured out-
side the United States. For such disposal, any employer may sell,
at prices and on terms andr conditions as favorable as those of thle
complyetinga foreign product, but only if he has first reported to the
Code Authorit~y his intentions so to sell, and the f~c~ts as to t~he
comlpet it lon which justifies such action.
ARTICLE VIII: UNFAIR TRADE PRACTICESS

The following are hereby declared to be unfair trade practices an~d
are violat~ions of this Supplemlental Code, v~iz:
1.. No employer of the Subdivisionl shall secretly offer or make
any payment or allowance of a rebate, refund, commission credit,
Irnear~ned discount or; excess allowranlce, whether in the formn of money
or otherwise, nor shall on employer of the Subdivlision secretly
offer or exrtendL to any customer any special service or privilege not
exl-~tendd to all customers of th~e same class, for the purpose of
influencing a, sale.
2. No employer of the Subdivision shall give, permit to be given,
or offer to give, anyt~lhing of value for thle purpose, of influenc~ing
or r~ewarnding the action of any employee, agent, or representative of








another in relation to the business of the employer of such employee,
the principal of such agent or thle represented party, without the
knowledge of such employer, principal or party. This provision
shall not be construed to prohibit free and general distribution of
articles commonly used for advertising exscep:t so far as such articles
are actually used for commercial bribery as hereinabove de~ned.
3. No employer of the Subdlivision shall publish advertising
(whlether sprinted, Itradio, display or of any other nature), which is
misleading or inaccurate in any material particular, nor shall any
mlemlber in any wayl misrepresenlt any goods (including but without
limitation its use, tradlemark, grade, quality, quantity, origin, size,
substance, character, nature, fimlsh, material, content or preparation)
or credcit, terms, vallues, policies, servieis, or the nature or form of
the business condluctedl.
4l. No empDloyer~ of th~e Subdiviision shall indulge in destructive
price-cuttmng.
AlRTICLE IX--SALES FOR ]Exroa
The provisionr s of thlis Suppl~lem ental. CodelP concrningr pricing and
marketing ar~e not. toc applyl! to direct export sales of anly product, or
to any~ pr'odut destined~: ultimately for export. The term export '"
shall include all shipmnent s to all places without the several states
of te U~nitedl States and the DistrIct of Columbia.; prov~iedl, how-
ev~er, thant no shipment to aIny territory or possession of the United
States shall be conlsidlered anl export when any employer is engaged
in th~e indul~stryv inl such territory or p~os-essionl.

ARTICLE ~--Afo`DIFICATIONS

(a) Als provided by Section 10 (b) of the Act, the President may
from time to time cancel or modify ainy order, approval, license,
rule, or regulation issued under Title I of the Act.
(b) Any amlendmellnts, additions, revisions, or suppleml~ients of this
Su1>l'~pplemntl Code, piroplosedl by Code ~Authority, and authorized
by the affima~ntive vote of 662/3% Of the employers shall be in full
force and effect upon alpproval;' by the Presidlent. The eligibility
requlilrement s for employers for such voting shall be the same as
provided by Section (d) of Article V hnereof.
ARTICLE XI -WIT`HDRAWAL

U~ponl thirty- (30) days notice to the Basic Code Authority and
to the Administrator, this Subdivision may, upon the concurringi
affirmative vote of employers, within the said Suzbdivision. entitled
to cast two-thirds or more of all the votes that mlighlt be cast by all
employers within the Subdiviision entitled to vote thereonr, withdraw
from the jurisdiction of the Basic Code Authnority. The eligibility
of voters~ for such. vortingr shall be inr necordance wSith the provisions
of Sc~rtionl d of Article V hereof. After and in the event such with-
drawtal is accomplished thi~s Su~pplemental Code, together with the
provisions of the Code shall become and be the sole code governing
this Sjubdivision, and the Code Authority- shall for this Subdivision,
become and be the sole Code Autlhority and shall perform all the
functions with. respect thereto.








AerTIcLE XII--ATONOPOLIEES

Applicant imposes andi shall impose no inequitable restrictions on
membership t.herein. The SCupplemlental Cod~e presented by it is
not designed to p7romiote mnonopoly, and shall not be so construed or
applied as to oppress or elimiinate small enterprises or discriminate
against then, and is designed to effectuate the policy of the Act.
AnTIcLE XIII--EFFECTIV.E DATE

This Supplemlental Codle shall become effective and binding on
all persons: engaged in the Subdivision on the eleventh day after
its approval by the Presidlent.
Approved Codle N'o. 347'i-Supplelemnt N'o. 42B.
Registry No. 1309--67i.




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