Supplementary code of fair competition for the diamond core drill manufacturing industry (a division of the machinery an...


Material Information

Supplementary code of fair competition for the diamond core drill manufacturing industry (a division of the machinery and allied products industry) as approved on May 31, 1934
Portion of title:
Diamond core drill 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:
Diamond bits   ( lcsh )
Bits (Drilling and boring) -- 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. 1321-01."
General Note:
"Approved Code No. 347--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 - 004939704
oclc - 652409995
System ID:

Full Text







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


Registry No. 1321--01

Approved Code No. 347--Supplement No. 9

(A Division of the Machinery and Allied Products Industry)



This publication is for sale by the Superintendent of Documents, Govertiment '
Printing Office, Washington, D).C., and by district offices of the Bureau of For~eign ~.
and Domestic Commerce.
A~tlanta, Ga.: 504 Post Office Building. I
Birmlingham, Ala.: 2:57 Federal Building.
Bostonl, M~ss. : 1801 Customhouse.
Buffalo>, N.Y.: CIhamber of Commerce Building.
Charleston, S.C.: Chamber of Commaerce Building.
Chicango, Ill.: Buite 1706, 201 North Wells Street.
Clevelandl Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Comnmerce Btuilding.
Detroit, Mlich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jalcklsonville, Fla.: Chamlber of Commerce Building.
K~ansas City, M~o.: 1028 Baltimore Avenue.
L-os Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Miemphis, Tenn.: 229 Federal Building.
MIinneapoplis, Mlinn.: 213 Federal Building.
New? Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plumoe Street.
Philadelph~ia, Pa.: 422 Comnmercial Trust Building.
Pittsburgh, Pa.: Chamiber of Commerce Building.
Portland, Oreg.: 215 Newv Post Office Building.
St. Louis, Mlo.: 506 Olive Street.
San. Francisco, Calif.: 310 Custombouse.
Seattle, Wash.: 809 Federal Office Building.

Approved Code No. 3471-Supplement No. 9


As Approved on May 31, 1934

An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the Nriational Industrial
Recovery Act, approved June 16;, 1933, for approval of a Supp~le-
mental Code of ]Fair Comnpetition for the Diamond Core Drill Manu-
facturing Subdivision of Machinery and Allied Products Indu~stryS,
and hearings having beYen dulyv held~ thereon and the annexed report
on said~ Sulnpmplemental Code containingr fnding~s with respect thereto,
having been made and directed to the President:
NOWP, THEREIFORE, on behalf of the Prelsid-ent of the Unlited
States, I, Hugah S. Johnson, Administrator for Industrial Recovery,
pursallnt to authority vested in me _by Executive Orders of the Pres-
ident, including Executivie Order No. 6i543-A, dated Decemllber 30,
1933, and otherwise; do hereby incorporate by reference said annexed
report and do find that said Supplemental Code complies in all
respects with the pertinent provisions and will promote the policy
and purposes of said Title of said Act; and do hlereb~y order that
said Supplementfal Code of Fair Competition be and it is hereby
approved subject to thne following conditions:
1. That the provisions of Article VIII, Sec~tionl (a) inlsofnr as
they prescribe a waiting period between the filing wit~h the Code
Alut~horit~y (or such agency as may be designated in thne Supplemental
Code) and the effective date! of price~ lists, as originally filed and/or
revised price lists or revised terms anrd conditions of sale, be and they
hereby are stayed pending my further order.
2. That. the! provisions of Article VTIII, Section (e) be and they
hereby are? stayed, pending the submission of satisfactory evidence
concerning distribution of the products of thne Subdivision to th
Ad1m~inistratfor for Industfral Recovery.
Approval recommended :
DTivisi~on. Ad ministrator.
May 31, 1934
64003"-65-~-1-----34 (11


The W~hite House.
SmR: This is a report on the Supplemlental Code of Fair Compe-
tition for the Diamond Core Drill Mlanufacturin~g Subdivision of
the IMachinery and Allied 1Products Indust~ry, public hearing having
been conducted thereon in Washin~gton, D.C., December 21, 1933,
in accordance with the p~rovisions of Tit~le I ofI the National Indus-
trial Recovery Act. Every person who filed a request for an appear-
ance wcpas freely heard and all statutory and regulatory requirements
were complied with.

The Diamond Core Drill Mi\anufacturers Association, being truly
representative of this Subdivision of the Mlachinery and Allied
Products Industryr, has elected to av~ail itself of the option of sub-
mitting a Supplemental Code of Fair Competition, as provided in
Paragraph (2) Article I of the Basic Code! for the Mlachinery and
Allied P~roducts Industry, approved by you on the seventeenth day
of Mna rch 1934.
This Subdivision represents a part of the capital goods industry,
manufacturing and selling diamond core drills, supplies, fittings,
equipment and parts thereof.

This Subdivision, in 1929 employed approximately 2'20 persons,
including office w~orkers. Employment of factoryv workers, esti-
mated to be 176 in 1929, declined to approximately 72 in October
1933, or 59%r.
Annual sales of the Subdivision, based on1 estimates fur~nishedl by
the Diamond Core ]Drill Manufacturers Association, declined from
$1,450,000 in 1929 to $175,000 in 1932, or 88%~. Sales amounting to
$130,000 for the first seven months of 1933 point to a probable in-
crease in. business in 1933 over the 1932 level, if the present monthly
rate continues.
Approximately 912%r of the workers were working more than 40
hours per w~eek as of June 15, 1983. The average work-w~eek de-
clined from 50.9 hours inr 1929 to 33.7 hours in October 193.3.
Estimated average man-hnours per wFPeek declined fr~om 8,958 in
1929 to 2,426(a in October, 1_933, or 73%0. Unless there is a further
increase mn man-hour requirementst, the adoption of the 40 h~our week
is not exptc~ted to cause additional employment in this Subdivision.
Summarizize National ]Recovery Admninistrat~ion questionnaire re-
turns show thant, as of October 15, 1933, thne lowest minimum wage

paid by one or more establishments of this Subdiv8ision ranged be-
twfeen 40 cents and 45 cents per hour. The. adoption of the mmnimuml
wage rates therefore, will not cause an increase in the payroll of
the Subdivision, based on the adjustment of hourly rates which fall
below the minimum rate provided in the Code, emlploymlent remnain-
ing the same.

Article I states the purpose of the Supplemental Code.
Article II accurately defines specific terms employi)ed in the Sup-
plemental Code.
Article III. The Inbor provisions of the Basic Code for the M~a-
chinery and Allied Products Indlustry as approved Miarch 17, 19341,
are incorporated byr reference as the labor provisions of this Supple-
mental Code.
Article IV adopts the relevant portions of Article II "Defini-
tions and Article VTI "A~dministral~tion "; and A~rticles VrIII "' Myodi-
fications andl Termination ", and IX Withdrawal of the Basic
Code for the M~achinery and Alliedl Products IndustryT, as approved
March 17, 1934.
Article V establishes a Cod~e Authority consisting of five meml-
bers. The Administrlat.or ma~y, in hlis discretion, appoint one addlii-
tional member (without vote andl without expense to the Sub~livi-
sion). Together wFith the applicable provisions of the B3asic Code,
miechanismi is provided for the administration of this Supplemental
Article VTI provides for an accounting system7 and methods of
cost finding and/ior estimiating.
Article V'II provides that when an emergency exists in this Subdli-
vision and that the cause thereof is destructive price-cutting sw-~h
as to render ineffective or seriously endanger the maintenance of
th~e provisions of this Supplemental Code, the Code Authority mlay
cause to be determinled the lowest reasonable cost of the products of
this Subdivision. The Administrator may approve, disap~prove or
modify the determination.
Article VIII provides methods of setting up and revising price
Article IXL sets forth the unfair trade practices which have been
especially designed to restrain unfair competition in this Subdiv~ision1.
Article XI~ defines export ~territory and provides that filed prices
are not applicable to export shipments.
ARTICE XI contains the maindatory proisions contained in See-
t.ion 10 (b) of the Act and also provides for the submission of
proposed amendments to the Supplemental Code.
Article XCII provides for the withdrawal of this Subdivision from
jurisdiction of th Basic Code and for the continued functioninrg of
this Subdivision as an :individual industry under its own Code.
Article XIII stipulates that there shall be no inequitable restric-
tions and provides against monopolies.
Article XIV1C gives the effective date of this Supplementl Code.

The Depu"ty' Administrator inn xrchis final report to me on said Supple-
:mental Code having foundl as herein set forth and on the basis of
all the proceedings in this matter :
I find that:
(a) Said Supplemiental C~ode is well designed to promote the
policies and purposes of Ttle I of t~he National Industrial Recovery
Act, including r~emoval o btutost h refo fitrtt
and foreci n commerce, which tend to diminish t.h~e amount thereof ;
and will provide for the general welfare by promoting the orgraniza- :
tion of industry for the purpose of cooperative action among the
trade groups by inducing and maintaining united. action of labor
and mainagement under adequate governmental sanctions and super-
vision, by eliminating unlfai~r comlpetitive practices, by promot~ingr the
fullest possible utilization of the present productive capacity of in-
dustr~ies, by avoiding undue restriction of production (except as mnay
be temporarily :requ hired ), by i ncrea si ng the consumpt ion o f i nd ustria~l
and agricultural products through increasing purchasing power, by
reducing and relieving unemployment, by imptl~roing standards of
labor, and by rt'herw~ise reha~bilitatinga industry.
(b) Said ~Subdivision normlally employs not. more than 50,000
employees; and is not classified by me as a major industry.
(c) The Supplemeental Code as azpproved complies in all respects
wvith the pertinent, provisions of said Tit~le of said Act., including
without limitation Subsection (a) of Section 3, Subsection (a) of
Section 7, and Subsection (b) of Sect~ion 10 thereof; and that the
apphicant association is an industrial association truly representa-
tive of the aforesaid Subdivisionl; andt that said association imposes
no inequitable resrtrlictions on admission to membership t~herein.
(d)\ The Supleme~1ntaln Code is: nort designed to and will not per-
mit monopolies oar monopohlstic practices.
(e) The Sup~plemnental C'ode is not designed to and will not elimi-
note or oppress small enterprises and will not operate to d~iscrimi-
nate against them.
(f) Those engaged in other steps of t~he economic process have
not been deprived of the right to be hear~d prior t~o approval of said
Supplemental Code.
For these reasons, therefore, I havre approved this Supplemental
Code, provided t~hat certain provisions relating to price publica-
tion are stayed and that thne p~rovisions of Article VTIII Section (e)
are stayed, as stated in the Order.
Adm7in iStrIator.
MuaY 31, 1934.


To effectuat~e the policy of Title I of the Nat~ional Industrial Rtecov-
ery Act, the following provisions are established as a Supplemnental
Code for the Dia~mond Core Drill Rlanufacturing Subdivision of the
Machinery and Allied Prodlucts Industry, and together with the Code
of Fair Competition for Miachinery and Allied P~roducts Industry,
shall be the standard of fair comp~ettiton for this Subdivision, and
shall be binding on every employer therein.

"ApIplicant' means the Diamlond Core Drill Mnunrfne~turers' Asso-
ciation, a trad-e organization which organization is truly represen-
tative of this SCubdlivision, all members of which are engaged in the
manufacture for sale of the products of the Diamond Core Drill
Manufacturing Subdivision of the Machinery and Allied Products
"i Industry means thle Manchinery and Allied Products Industry,
as lefined in its National Industrial Recovery Code as approved
by the Presidenlt, andl as such~ definition mnay from time to time be
Subdivision means the Diaomod Core Drill Mannufactur~ing
Subdivision of the M~achinery and Allied 1Products I~ndustry as
defined and set forth in paragraph 9, ASrticle II of the Nat~ional
Industrial Recovery Code of the M~lachirnery and Allied Products
Industry as follows:
Diamond core drill manufacturingr subdivision means the manu-
factur~e for sale of diamondl core drills, supplies, fittings, equipment,
and parts thereof, and includes all those engaged in such manufac-
ture for sale."
Code means thle National Industrial Recovery Code of the
Machinery and Allied Prod~ucts Industry as approved by the Presi-
dent, M\arch 17, 19;34, and as frorn time to time amended.
"' Person "' means a natural person, a partnership, a corporation,
an ass-ociation, a trust, a trustee, a trustee in bank~ruptey, a receiver
or ot her entityv.
"i Employer means any person engaged in this Subdivision
either on his own behalf or as an employer of labor.
"' Employee means any one woPho is employed in the Subdlivision
by any such Employer.
"' The Act means Title I of the National Indust~rial Recovery

L The President means the President of the United States.
T~he Admtinistrator' means the Admlinistrator for Industrial
Basic Code Authority means the Code Authority for the
Machinery and Allied Prlodcts Industry as constituted by the Gode.
"' Code Authority "' means the Code Authority constituted for this
Subdlivision as provided by thle Code and b~y this Supplemental Code.
Group Code Authority means the Code Authority for any
group or product classifiention within this Subdivision.
'"Publish meanss to make available to the public.

The following Articles of t~he Code, viz: Article III, "L Working
Hours "; Article IV, Wagaes ";, and Article V, General Labor
Provisions are hereby made a part of this Supplemental Code,
wiith the same effect as if they were written into this Supplemental

The following Articles of the Code, viz: Article II, Defini-
tionls "; Article V'I, "Archninistration "!, to the extent that they shall
be applicable to this Supplementa~nl C'ode as such or as it may here-
offer be admlinisteredl as an autonomous Code; Article VIII, Modi-
fications and Termination "'; and Article IX, Withdrawal ", are
hereby made a part of this Supplemnental Code, w~ith the same effect
as if they were wFritten into this Supplemental Code.

(a) A Code Authority for this Subdivision is hlereby constituted
to administer, supervise and facilitate the enforcement of thle Code
and of this Supplemecntal C'ode in the manner and to the extent pro-
vcided in thre Code and in this Supplemental Code.
(b)~ During a period not t~o exceed sixty (60) dlays following the
effective date and pending t~he election of the permannent Code Au-
thority, the Exe~cutive Committete of tlhe Applicant shall constitute
a temporary Code Aut~hority.v
(c) The Appliennt shanll, by written notice mailed to all employers
knowi~n to the Appliennt, call a meeting of emnployers to b~e held with-
in sixty (60O) day~s after the effective date for the purpose of adopt-
mng procedural rules andl regulations for th~e election, organization
and operation of th~e permanent Code Authority and electing a per-
maneint Code Auithor~ity which~ shall consist of five (5) members.
The Admlrinijtra7to-r, in his discretion, miay appoint. one additional
membelir (without vote and without expense to the subdivision).
Th'2e permanent Code Aulthor~ity .s elected andl appoint~ed shall super-
sede the temporary Cod~e Autho~rity.
(d) 1. It being found necessary, in ordlerr to support the adminis-
~tration of this Supplemental Cclde and to maintain the standards of
FEair Competition established~ by this Su~pplemnental Code and to
effectuate the policy of the Act, thle Codl.e Authority is authorized,
subject to the approval of thle Admlninlistrator:

(a) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes and to meet such obligations out
of funds which may be raised as hereinafter provided and which shall
be held in trust for the purposes of the Supplemental Code;
(b) To submit to thle Administ~rator for his approval, subject to
such~ notice and opportunity to be heard as he may deem necessary,
(1) An itemized budget of its estimated expenses for the foregoing
purposes, and (2) an equitable basis upon which the funds necessary
dto support such budget shall be contributed by members of the Sub-
dinsion ;
(c) After such budget and basis of contributions have been ap-
proved by the Administrator, to determine anld secure equitable con-
tribution as above set forth by all employers of the Subdivision, and
to that end, if necessary, to institute legal proceedings thierefor in
its own name.
2. Only employers of the Subdivision complying with the Supple-
mental Code and contributing to thre expenses of its administration,
as provided in Section 1 hereof, shall be entitled to participate in
the selection of the members of the Cod~e Aiuthority, or to receive the
benefit of its voluntary activities or t~o make urse of any emblem or
insignia of the National Recovery Aldministration.
(e) Action by employers in any Subdiv9ision meeting for the
election of Code Aut~horityS shall be by vote of the employers en-
tit~led to vote as provided in Sectionl (d) of this Article V7, each such
employer to have one vote only. Action by employers in any Sub-
division meet~inga for the adoption of procedural rulles, revisions or
additions to the Supplemuent~al Code, or thie transaction. of oltheir
business of the Subdlivision under this Supplemental Code, shall
be by vot~e of the employers in thle Subdivision who are entitled to
vote threat as provided in Section (d), Article V of the Supple-
mental Code and are: present in person or by proxy duly, execu ted
and filed wit.h Clode Aut.horit.y; cast, and computed in th mnnlrr
provided in Section (d) Article V'I of the Code. All qjuest~ionls as to
the number of votes which each employer shall be entitled to cast
at any meeting of employers ot.hler than the meeting held to vote
for thle election of the permanent Code Aut~hority dhall be determined
by C'ode AuthorityS, in accor~dance with Section (d) Artcle V7I of
the Clode.
Any vaenancy on the Code Authority due. to death, resignation, or
because a member thereof hlas ceased to be connected with. this Sub-
division, shall be filledl at a meeting of employers called by the Code
AuthorityI on at least ten (10) days notice by registered mnail, sent
to all employers in this Subdivision and by a vote similar to the vcote
by which th~e retired member was originally selected.
(f) Emnployers in this Subdivision having a common interest and
common problems may be grouped by Code A4uthorit~y for admninis-
trative purposes. There shall be a Group Code Auithority approved.
or appointed by Code Authority for each such group.
(g) If formal complaint is made to Code Authority that provi-
sions of this Supplemental Code have been violated by any employer,
Code Authority or the proper Group Code Authorityr may to the
extent permitted by the Act, cause such investigation or audit to be
made, as may be deemed necessary. If such investigation is made byg

Group Code Authority it shall report the result of such investigation
or audit to Code Authlorit~y for action.
(h)h The Code Authority may appoint a Trade Practice Commit-
tee which shall meet with the Trade Practice Committees appointed
under such other Codes as may be related to the Subdivision for the
purpose of formulating fair trade practices to govern the relation-
shipls between production and distribution employers under this Sup-
plemlental Code anid under such others to the extent that such fair
trade practices may be proposed to the Administrator as amendments
to this Suppllemental Code and such other codes.

The Code Authority shall cause to be formulated an accounting
system andn melthodsri of cost. findings and, or estimating capable of use
by all employers of the Sjubdivision. After such system and meth-
ods have been formnulated~, full details concerning them shall be made
available to all emnployers. Thereafter all employers shall determine
and/or estimate costs in accordance with the principles of such


When the Code Authority determines that an emergency exists
in this Subdivision and that the cause thereof is destructive price-
cutting such as to :rendler ineffective or seriously endanger the main-
tenance of the provisions of this Supplemental Code, the Code Au1-
thority mnay cause to be determined the lowest reasonable cost of the
products of this Subdivision, such determination to be subject to such
notice and hearing as the Administrator may require. The Ad-
ministrator may app~rove, disapprove, or modify the determination.
Thereafter, duringr thep rperiod of t~he emergency, it shall be an unfair
trade practice for any employer of thle Subdivision to sell or offer to
sell any products of the Subdivision for which the lowest reasonable
cost has been determined, at, such prices or upon such terms or condi-
tions of sale that the buyer will pay less therefore than the lowest
reasonable cost of such~ products.
When it appears that conditions hav-e changed, the Code Au-
th~ority, upon its own initiative or upon the request of any interested
party, shall cause the determiiinationi to be reviewed.

(a) If and when C'ode Authority determines th~at. in any group
of the Suxbdivision it hans been the generally recognized practices to
sell a specifiedt product on thle basis of net price lists, or price lists
w~ith~ dI slcounlt sheets, andc fixed terms of sale and payment, each emi-
playe't~ir nagedt in thle manunfacture of such product, shall, within tenl
(10) days after notice of such determination, file with Code Au-
th-ority a net price list, or a price list withl discount sheet, as the case
may be, indlividually I1Epnrepare by him show~inga his current prices, or
prices and discounts, andc sterns of sale and payment for such speci-
fled product, and Codec Aluth~ority sha11 ll mediat.ely publish and sendl
copies: thereof to all kinow~n emnploy~ers w~ho are cooperating under

this Supplemental Code as described in Article V (d) and engaged
in the manufacture of such specified products.
Revised price lists and/or discount sheets and 'or ter~ms of, sale
and payment may be filed fromt time to time thereafter withl the
Code Authority byany such employer, to become operative upon
the date specified therein, but. such revised price lists and/or dis-
count sheets and,/or terms of sale and payment shall be filed with
the Code AuthorityS ten (10) dayrs in advance of the operative date.
Copies thereof, with notice of th~e operative date specified, shall be
immedia~tely pubhlished and se~nt to all employersr rncopranting under
this Supplemental Code as described inl Art~icle VT (d), any of whomn
mayr fle, if he so desires, revisions of his price lists and/or discount
sheets and/'or terms of sale andt payment, which shanll become effec-
tive upon the date when the revisedl price list and/or discount sheet
and,/or terms of sale a~nd payment first, filed shanll go into effect.l
(b) If and when Code Authority shall determine that in. any
group of the Subdivision not now selling its product on the basis
of price lists, with or without discount sheets, with fixed terms of
sale and payment, the distribution or marketing conditions in the
group are: the same as, or similar t~o, the dlistributioni or marketing
conditions in a group where the use of price lists, with or without
discount sheets and fixedl terms of sale and payment is well recog-
nized, and that a system of selling on net pr1ic~e lists or price lists and
discount sheets with fixed terms of sale andt payment for such spec
ifiedi product should be put into effect in such~ group, then each em-
ployer in such group shall within twrenty (20)) days after notice of
such determination, file with Code A~uthor~ity ne~t price lists or price
lists and dlisc~ount sheets, with fixed terms of sale and payment, show-
ing: his prices and discounts and terms of sale and payment, and
such price lists and.l'or discount sheets and 'or terms of sale and pay-
mnent may be thereafter revisedl in the manner hereinbefor~e pro-
vided. Provided that Code Authflorityr shall make no determln~iinatio
to place any product of the Subdivisionl (noct nowp on a price list
basis)on a price list basis, as provided in this Section unless affirma-
tive consent to such det~ermlinat~ion is givecn by a 6j62/4%a V~te Of
employers who are at that t~ime cooperating under this Supple-
mental Code as described in Alrticle V' (d), and are engaged in man-
ufacturing such product. Thle eligibility reqcuiremenrts, method,
and effect of such voting shall be thle same as is provided by

(c) Code Authority for the purpose of determining t~he lowest rea-
sonable cost, shall, to the extent. permitted by the Act, have power,
on its owrn initiative, or on th~e complalint of any employer, to invests-
gate any price, or the terms of sale and pymnentt for any 13roduct,
and, for thle purpose of t~he investigation thereof, to require, such
employer to furnish suich information concerningr the cost of muanu-
facturing and selling such product as Code Authorit~y shall deem
necessary or proper for such purpose, and as the Act may allow.
(d) Njo employer shall sell directly or indirectly by any means
whatsoever, any product of the Subdivision covered by provisions
of this Article VIII at a price or at discounts or on terms of sale
1 See paragraph 2 (1) of order approving LLis Code.

and payment, different. from those provided in his own current net
price lists or price lists and discount sheets, and terms of sale and
(e) Nor employer s~hall sell to or through any distributor who does
not agree to resell in accordannce withi the provisions of Article VIII.2

1. No employer shall secr~etly offer or make any payment or allow-
ance of a rebate, refund, commission, credit, unearned discount or
excess allowPance whether in the form of money or otherwise, nor
shall any employer of the Subdivision secretly offer or extend to i
any customers any special service or privilege not extended to all r
customers of the samie class, for the purpose of influencing a sale.
2. No employer shall publish adlver~tising whetherr printed, radio,
display or of any other nature), which is mnisleadling or inaccurate
in any material particular, nor shall any mnemlber in any w~ay mnisrep-
resent any goods (including but w~it~hout limitation its use, trade-
mark, grade, quality, quantity, origin, size, substance, character,
nature, finish, material, content or preparation or credit terms,
values, policies, services, or the nature or form of t~he business
3. NTo employer shall publish or circulate unjustified or unwar-
ranted threats of legal proceedings which tend to or have the effect
of harrassing competitors or intimidating their customers.
4. N~o employer shall engage in destructive price cutting.


The provisions of this Supplemnental Code concerning pricing and
markretinga shall not apply to direct export sales of anyr product.
A similar exemption may be gtrantedl by the Code Authority as to
sales of any product destined ultimately for export. Unless ot.her-
wise deter~mined by th~e Code Authority t~he termi export shall
include all shipments to all places without the several states of the
United States and the District o~f Columbia; prov\idedl however,
that no shipment to any terri~tory or possession of the Umited Staters
shall be considered an export when any emlploy~er is engaged in
the Subdivision. in such. territory or possession.


(a) A9s provided byT Section 10) (b:) of the Act, the President niny
from time to time cancel or modtify any order, approval, license, rule
or regulation issued under Title I of the Act.
(b) Any amendmlenrts, additions, revisionls, or supplemnents of this
Supplemental Code, proposed by Code Authority, and authorized
by the affirmative vote of 66% ~T~o of th~e emnployers shall be in full
force and effect upon approval by the Admninistraitor. The eli-
gibility- requirements, method andc effect of such voting shall be the
same as provided by ~Article V hereof.
P See paragraph 2 (2) of order approving this Code.


Upon thirty days notice to the Basic Code Authlority and to the
Administrator, this Subdivision may, upon thle concurring affirmative
vote of employers, within the said Subdivision entitled to cast two-
thirds or more of all t~he votes that. might be cast by all employers
within the Subdivision entitled to vote thereon, withd~raw from the
jurisdiction of the Bansic Code Authorityv. The eligibility of voters
and the method and effect. of such shall be in accordance
with the provisions of Article V hereof. After and in the eenit
such withdrawal is accomplished this Supplemiental Code, tog~ethler
with the provisions of t~he Code shall become and be the sole code
governing this Subdivision, and the Code Authority shall for this
Subdivision, become and be the sole Codle Authority and shall per-
form all the functions w~itth respect thereto.


Applicant imposes and shall impose no inequitable restrictions on
membership therein. The Supplemiental Code presented by it is not
designed to promote monopoly, and sh~all not be so construed or ap-
plied as to oppress or eliminate small enterprises or discriminate
against then, and is designed to effiectuate thle policy of the Act.

This SuppDl~emental Codle shall become effective and binding on all
persons engaged in t~he Subdivision on the eleventh day- after its
Approved Code No. 3417. Supplement No. 9.
Registry No. 1321-01.